1.A shareholder who owns less than 50% of the shares of a corporation can never be considered a "controlling" shareholder.

True

False

2.Linda Johnson serves on the board of directors of Tesla (a manufacturer of electric automobiles). She is also CEO of Johnson Publishing Company. She is approached regarding a small publishing company that is for sale. She does not present the opportunity to Tesla. Has she violated her fiduciary duties to Tesla?

a. Yes, she has violated the duty of loyalty.

b. No, her duties to Johnson Publishing Company supersede those to Tesla.

c. No, the potential acquisition of a small publishing company is not a corporate opportunity for Tesla.

d. Yes, she has violated the duty of care.