Please advise if all answers are correct.

Eloise is a director for Frozen Yogurt Company. Eloise is also a director for Gelato Desserts, Inc. When the board of Frozen Yogurt considers entering into a contract with Gelato Desserts, Eloise must

a	Do nothing
b	Not sell
c	Make full disclosure of any conflict of interest
d	Resign for one of the boards

C

Tucker is a director of USA Auto Parts, Inc. Under the standard of due care owed by directors of a corporation, Tucker's decisions must be

a	careful
b	unwavering
c	Informed and reasonable
d	Perfect

C

1. Renee is a director of Sharp Focus Lens Corporation. With respect to Sharp Focus, Renee can access the corporation's books and records. Renee has this access under

a	The directors right to participation
b	The directors right to inspection
c	The directors right to indemnification
d	The articles of incorporation and by-laws

B

Alain is chairman of the board of Barber & Beauty Supply Corporation. Consuela, a consumer, is injured while using a Barber & Beauty product. She sues Barber & Beauty and Alain individually. The corporation may pay Alain's legal fees under

a	The directors right to participation
b	The directors right to compensation
c	The directors right to indemnification
d	Only on the firm's initiative

C

Godwin is a director on the board of Health Insurance Corporation. On the receipt of notice of a board meeting, Godwin attends the meeting and takes part in the discussion of business matters, and votes on corporate issues. Godwin is entitled to be notified of, and to take part in, these meetings

a	Under the director's right of participation
b	Under the director's right of compensation
c	Under the director's right of indemnification
d	Only on his own initiative

A

The state can suspend the entity's corporate status until the taxes are paid or even dissolve the corporation for failing to pay taxes.

True

False

T

The corporation is a creature of the common law.

True

False

F

1. When a corporation earns profits, it must pass them on to shareholders in the form of dividends

True

False

F

1. The articles of incorporation serve as a primary source of authority for the corporation's future organization and business functions.

True

False

T

The registered agent is the person who can receive the legal punishment (such as fines and imprisonment) on behalf of the corporation.

True

False

F