Dividends must be distributed from the corporation's Select one: O a. Research and Development fund O b. Retained Earnings O c Liquidated Assets A corporation may raise money by Select one O a. Selling Stock O b. Issuing Bonds O c Investments by Venture Capitals O d. All of the above Directors have fiduciary duties to Select one O a Participate O b. Make informed decisions O c Reasonably supervise O d. All of the above Manages the day to day operations of the corporation Select one O a Directors Ob Officers O Shareholders Shareholder liability for corporate debitis Select one O a Limited to the amount of their capital contribution Ob Unlimited OcJoint and Several Shareholders' primary responsibilities are to Select one: O a. Elect Directors O b. Vote on fundamental changes to the corporation OcBoth A and B O d. Nothing. Their only function is to own stock Which of the following oversees corporate policy? Select one: O a Officers an O b. Shareholders O c Directors Shareholders may vote the number of her shares times the number of open seats on the board, and may distribute her votes as she chooses. This is known as an Select one: O a. Preemptive Rights O b. Voting Trusts Oc Cumulative Voting The purpose of preemptive rights is Select one: O a. To allow shareholders to preempt the distribution of dividends. O b. To allow shareholders to preempt voting rights. O c. To allow shareholders to maintain their balance of power. on The alter-ego theory allows courts to on Select one O a. Change the corporate purpose O b. Change the corporate name The number of directors is set out in the Select one: O a Bylaws O b. Articles of Organization O c Operating Agreement A shareholder, whose ownership interest has priority over other shareholders with regard to payment of dividends is said own Select one O a Common Stock O b. Preferred Stock O Venture Capital Od Bonds Which of the following is not requirement for the Business judgment Rule to apply? Select one There was no conflict of interest between the Director's or Officer's personal interest and the interest of the corporation The Director of Officer had a rational basis for the decision The Director or Officer took reasonable steps to become informed about the matter The Director or Officer has indemnification insurance The purpose of the Bylaws is to Select one O Outline the corporate structure Define a quorum d. Al of the above The document needed to incorporate is called Select one O b. Operating Agreement O Artides of Incorporation O d. Artides of Organisation A group of shareholders, by voting agreement or by entering into a voting trust, vote their shares together. This is known as Select one: O a: Preemptive Rights O b. Voting Trusts O Cumulative Voting Another name for owners of a corporation Select one O a Stockholders O b. Shareholders O c Both are names for owners of a corporation Piercing the corporate veil means Select one O a Corporate officers are required to be more transparent O b. Corporate directors are required to be more transparent O Shareholders become personally liable for corporate debt A professional investor who finances a corporation is called a -Select one O a Bondholder O b. Crowdfunder O Venture Capitalist At the first meeting of shareholders, the shareholders must Select one O Adopt the Blues Ob Elect the Directors Elect the Officers Od. All of the above O . Answers and b Which of the following is not a reason for the court to pierce the corporate veil? Select one: O a. The officers and shareholders treat the corporation like a partnership (as their alter ego! O b. The corporation does not follow the corporate formalities. Oc An officer borrows money from the corporation and pays interest on the loan O d. The shareholders do not invest sufficient capital. O e. The corporation is formed for an improper purpose. Watered stock is stock sold Select one: O a. At face value O b. At par value O c. Below market value O d. Above market value Which of the following is not included in an officer's or director's fiduciary duty? Select one: O a. Duty not to usurp corporate opportunities O b. Duty to subordinate their personal interests to the interests of the coropration O c. Duty not to lose money O d. Duty not to compete Officers are hired by Select one O a Venture Capitalists. O b. Shareholders. c. Directors