1. Identify the correct statement about the inspection rights of a shareholder.

a. Shareholders can inspect records and books only if they ask in advance and have a proper purpose.

b. Shareholders cannot appoint an agent to conduct an inspection on their behalf.

c. Corporations cannot deny shareholders the right to inspect confidential corporate information.

d. Shareholders have the right to inspection under statutory law but not under common law.

2. Which of the following statements is true of a stock certificate?

a. A stock certificate includes a corporation's name and the number of shares it represents.

b. Appearance of the number of shares on a stock certificate is illegal.

c. The availability of a physical stock certificate is a must to indicate ownership in a corporation.

d. Multiple copies of a stock certificate can be requested at no cost.

3. Which of the following statements is true of the directors' rights in a corporation?\

a. They do not possess the rights to purchase shares of a new issue of stock.

b. They have the right to compensation for their work, which is granted in the same way by all corporations.

c. Their rights are defined by employment contracts drawn up by the shareholders and the employees.

d. They have the right to be notified of all meetings and have access to all books and records.

4. Which of the following statements is true of officers?

a. Outside officers authorize corporate policy decisions.

b. Officers own the stock of the company, and their goal is to increase the value of the company's stock.

c. Rules of agency are not applicable to officers.

d. Officers are executive managers whom the board of directors hires to run the day-to-day business of the corporation.