EXAM STUDY MATERIALS 8/7/2024 11:29 AM
BUS LAW Ch 22 Exam Questions With
Correct Answers
False - answer✔✔A de jure corporation has not substantially met the requirements of the state
incorporation statute.
To the extent of the value of the shareholder's corporate shares - answer✔✔To what extent are
shareholders' liable to corporate creditors?
Only individuals, partnerships and corporations can be shareholders. - answer✔✔Which of the
following is not a requirement of an S corporation?
Officers - answer✔✔In a corporation, who runs the day-to-day operations?
business judgment - answer✔✔Directors and officers are not liable for decisions that harm the
corporation if they act in good faith under the _____ rule.
All damages recovered go directly to the individual shareholder. - answer✔✔Which of the
following is not true of a shareholder's derivative suit?
Right to a percentage of dividends associated with the face value of stock - answer✔✔Which of
the following is not a right of a common stock owner?
False - answer✔✔Business self-dealing occurs when a director or officer makes business
decisions that benefit her personally.
Par-value shares - answer✔✔What type of share have a fixed face value noted on the stock
certificate?
Alien corporation - answer✔✔What is a corporation that is incorporated in a foreign country
called?
True - answer✔✔The right of first refusal is a method of restricting stock transferability.
After the secretary of state issues the certificate of incorporation - answer✔✔When do
shareholders meet to elect the corporate board of directors?
fiduciary - answer✔✔Directors and officers have a _____ duty of care to the corporation.
Minority shareholders - answer✔✔All but which of the following individuals have a fiduciary
duty to the corporation?
BUS LAW Ch 22 Exam Questions With
Correct Answers
False - answer✔✔A de jure corporation has not substantially met the requirements of the state
incorporation statute.
To the extent of the value of the shareholder's corporate shares - answer✔✔To what extent are
shareholders' liable to corporate creditors?
Only individuals, partnerships and corporations can be shareholders. - answer✔✔Which of the
following is not a requirement of an S corporation?
Officers - answer✔✔In a corporation, who runs the day-to-day operations?
business judgment - answer✔✔Directors and officers are not liable for decisions that harm the
corporation if they act in good faith under the _____ rule.
All damages recovered go directly to the individual shareholder. - answer✔✔Which of the
following is not true of a shareholder's derivative suit?
Right to a percentage of dividends associated with the face value of stock - answer✔✔Which of
the following is not a right of a common stock owner?
False - answer✔✔Business self-dealing occurs when a director or officer makes business
decisions that benefit her personally.
Par-value shares - answer✔✔What type of share have a fixed face value noted on the stock
certificate?
Alien corporation - answer✔✔What is a corporation that is incorporated in a foreign country
called?
True - answer✔✔The right of first refusal is a method of restricting stock transferability.
After the secretary of state issues the certificate of incorporation - answer✔✔When do
shareholders meet to elect the corporate board of directors?
fiduciary - answer✔✔Directors and officers have a _____ duty of care to the corporation.
Minority shareholders - answer✔✔All but which of the following individuals have a fiduciary
duty to the corporation?
