18. Carol and Drew are two of nine authorized directors of Eagle Corporation. In most states, the minimum number of directors that could transact valid corporate business at a board meeting is: a. one. b. two. c. five. d. nine. 19. Shareholders have no right to inspect corporate books and records. When shareholders are deadlocked, a court may order the dissolution of a corporation. Bart and Cary are directors of Digital Designs, Inc. Voting by Bart and Cary at 20. 21. corporate directors meetings: a. may be cumulative. b. may be done by proxy in all states c. must be done in person. d. all of the above. In Rice v. Oriental Fireworks Co., the court concluded that plaintiff had the right to pierce the corporate veil due to the corporation's improper conduct in failing to observe corporate formalities and other fraudulent activities. 22. A court usually appoints a receiver to handle the liquidation process in a corporation's involuntary dissolution. 23. Commingling assets is the process of converting corporate assets into cash and distributing it to the corporation's creditors and shareholders. 24. 25. Incorporators must sign the articles of incorporation. The business judgment rule" means that directors and officers have to make perfect business decisions all the time. 26