CHAPTER 36—MANAGEMENT AND DISSOLUTION OF A
CORPORATION Key
1. Which of the following is true of a corporation?
2. Which of the following is true of a quorum?
3. Which of the following is an example of cumulative voting?
4. Which of the following best describes a proxy?
5. Which of the following best describes preemptive rights?
6. Which of the following best describes whistleblowers?
7. A _____ of two corporations occurs when they combine so that one survives and the other ceases to exist.
8. When a corporation is dissolved:
9. The directors of a corporation as a group act as fiduciaries.
10. The board of directors is the primary policy-making body of the corporation.
11. Stockholders cannot carry out a motion to elect a new board of directors.
12. Each stockholder has two votes for each share of common stock owned.
13. Attempts by competing sides to secure majority of stockholders’ votes are known as proxy wars.
14. A stockholder has the right to receive a proportionate share of the profits when profits are distributed as
dividends.
15. The directors of an organization do not have the power to delegate authority to any of its members to act for
the corporation.
16. As fiduciaries of the corporation, directors incur liability for losses when they are caused by bad faith.
17. A merger occurs when two corporations combine to form a new corporation.
18. A corporation may terminate its existence before surrendering its articles of incorporation.
19. A foreign corporation whose authority to do business in the state has been revoked is allowed to form
contracts.
20. Explain any three rights of stockholders.