4. Esperanza is a director on the board of Greater Foods, Inc.. On the receipt of notice of a board meeting, Esperanza attends the meeting and takes part in the discussion of business matters and votes on corporate issues. Esperanza is entitled to be notified of, and to take part in, these meetings

a. under the director's right to participation.

b. under the director's right to compensation.

c. under the director's right to indemnification.

d. only on his own initiative.

15. Alacoa is a shareholder of Mainland Freight, Inc.. Mainland uses cumulative voting to elect directors. This means that the number of Alacoa's votes is determined by the number of

a. years that Alacoa has been a shareholder.

b. members of the board to be elected multiplied by the total number of voting shares that Alacoa holds.

c. shareholders present at the shareholders' meeting.

d. shareholders' meetings that Alacoa has attended.

17. Raul owns one share of stock in Essex Corporation, as evidenced by a stock certificate. Raul loses the certificate. Raul's ownership of the stock is

a. forfeited immediately.

b. forfeited within ten days of a third party's claim to ownership.

c. forfeited within thirty days if he cannot find the certificate.

d. not affected.

18. Petula is a shareholder of Layton Corporation with preemptive rights. With these rights, Petula can

a. buy a prorated share of a new issue of stock before other buyers.

b. choose to have Layton Corporation act exclusively in a certain area.

c. "preempt" managerial decisions that affect shareholders.

d. sell a prorated share of a new issue of stock before other sellers.

19. Consuelo transfers shares of stock that she owns in Texas Grains, Inc. to Leon. A shareholders' meeting takes place before Leon's ownership is entered in Texan Grain's stock book. A vote at the meeting can be cast by

a. Consuelo and Leon.

b. Consuelo only.

c. Leon only.

d. neither Consuelo or Leon.

20. Jacob is a shareholder in ABCO Corporation. In some states, Jacob may be liable to the firm's creditors for unpaid corporate debts if she

a. accepts a dividend knowing that it was paid from retained earnings.

b. receives shares issued by the firm for less than fair-market value.

c. fails to fulfill his fiduciary duty to the majority shareholders.

d. sells his shares.