Business Law II Chapter 39 - Corporations: Directors, Officers, and Shareholders 1. The owners of the stock of a company are known as the... A. shareholders B. officers 2. This group is the decision-making part of a corporation. Its members share the power of deciding the course of action for a corporation. A. shareholders B. directors 3. This group's goal is to insure that the institution survives and that they keep their jobs. A. officers B. promoters 4. (True / False) Shareholders have the power to elect and remove directors. 5. Shareholders can appoint a third party, known as a __ to attend a meeting and vote in their place. 6. The fiduciary means that directors and officers must exercise due care when making decisions for the corporation. A. duty of decision B. duty of care occurs when a director or officer makes decisions that benefit other companies with which she has a relationship. A. business self-dealing B. personal self-dealing 8. (True/False) Directors and officers can be held liable for decisions that harm the company even if they were acting in good faith at the time of the decision. 9. (True False) Shareholders have the right to petition the court to dissolve the corporation if assets are being wasted or used improperly. 10. (True False) Compensation, participation, inspection, and indemnification are the rights of directors. 11. Vouchers issued to shareholders entitling them to a given number of shares are known as 12. (True False) Shareholders have the right of first refusal when shares are offered for resale by a shareholder