MULTIPLE CHOICE QUESTION - MCQ

Which of the following is not true regarding the role of the directors of a corporation?

Question 1 options:

	Directors owe the corporation a fiduciary.
	Directors are elected by the shareholders.
	Directors are generally protected from liability by the corporation.
	Directors are responsible for making the major decisions on behalf of the corporation.
	Directors are involved in the day to day operations of the corporation.

Question 2 (1 point)

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When the owner defaults on a mortgage, what can the lender do to obtain the money that is owed?

Question 2 options:

	Foreclosure
	Assignment
	Acceleration
	Discharge
	Redemption

Question 3 (1 point)

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Sue is starting a new business as a sole proprietor. She needs a loan and approaches the loan officer at the credit union to lend her money. The only assets that she has at the moment are the land and building where she carries on her business. If the bank manager wants to secure the loan to Sue, which is the most appropriate method?

Question 3 options:

	A mortgage
	A personal guarantee from Sue
	A personal guarantee from someone other than Sue
	A general security agreement

Question 4 (1 point)

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Which of the following statements best describes a partner?

Question 4 options:

	A partner may freely transfer his or her partnership interest to another.
	A partner is an agent of every other partner.
	A partner must have capacity at law.
	A partner owes the other partners a fiduciary duty.
	All of these statements are correct.