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48.
(p. 865)
Which of the following gives preference to shareholders to purchase shares of a new
issue of stock?
49.
(p. 865)
Which of the following may be redeemed for a certain number of shares at a specified
price within a given time period?
50.
(p. 866)
Which of the following references a right of a corporation or its shareholder to purchase
any shares of stock offered for resale by a shareholder within a specified period of time?
51.
(p. 867)
If corporate directors fail to sue when the corporation has been harmed by an individual,
another corporation, or a director, individual shareholders can file a[n] ______ on behalf of the
corporation.
52.
(p. 867)
In which of the following does a shareholder sue alleging that he has suffered damages
caused by the corporation?
53.
(p. 855)
How many votes will the minority shareholders have in the election?
54.
(p. 856)
Is Tina accurate that she owes no duties to shareholders?
55.
(p. 860)
Is Tina correct in that officers cannot be held criminally responsible for their actions on
behalf of a corporation?
56.
(p. 858)
What duty, if any, did Wendy violate?
57.
(p. 858)
In which of the following objectionable activities was Wendy involved, if any, in selling the
kites?
58.
(p. 858)
What remedy will be imposed on Wendy, if any, for her home kite sales?
59.
(p. 861)
Under which of the following should Bruno and the board of directors defend themselves
in an action brought by shareholders for harming the corporation?
60.
(p. 863)
Which of the following is a term for stock such as that issued to Frances?
61.
(p. 863)
Which of the following is true regarding liability of Frances, if any, for purchasing the
stock at below its fair market value?
62.
(p. 864)
List and describe the four rights of directors as listed in the text.
63.
(p. 853)
What are the requirements for being a director?
64.
(p. 856)
Which groups owe a duty of care to the corporation, and what does that duty require?
65.
(p. 858)
Mary is a director of a company that develops expensive residential subdivisions. The
company is considering attempting to purchase a large section of land on which to put a
development. Mary happens to own some of the land. What duty, if any, does she have regarding
disclosure and why or why not; and what steps, if any should be taken by the board when
considering the matter?
66.
(p. 857-858)
Set forth and describe the two types of self-dealing in which officers and
directors might engage and the penalty for doing so.
