Question 11(1 point)

A minority shareholder may be said to have been "frozen out" when:

Question 11 options:

his shares are taken away by the board of directors

the majority refuse to elect him to the board of directors

he is fired as a shareholder

the majority sell all the assets of the corporation

Question 12(1 point)

Directors do not have one of the following powers:

call meetings of shareholders

delegate responsibilities to appointed officers

declare dividends

dispense with shareholders meetings

Question 13(1 point)

Bonds:

are often referred to as equity

are sometimes called debentures

are also referred to as shares

represent an ownership interest in the corporation

Question 14(1 point)

Megacorp Ltd. is a large private Ontario construction company in which Albert, John and Michael are the shareholders and George, Mary and Sam are the directors. Recently, Albert and John started up a building supplies business, which now has a contract to provide building supplies to Megacorp Ltd. However, Michael objects to this. In this situation:

Question 14 options:

Michael is correct in objecting because Albert and John are shareholders in Megacorp Ltd.

Michael is not correct in objecting because Albert and John have no fiduciary duty to Megacorp Ltd.

Michael is correct in objecting because Albert and John have a fiduciary duty to Megacorp Ltd.

Michael is not correct in objecting because Albert and John have a duty of good faith to Megacorp Ltd.

Question 15(1 point)

A director's duties are owed:

to the shareholders in general meeting

to the tax payers

to the corporation

to the shareholders in any form or capacity

Question 16(1 point)

As vice-president of marketing, Jack was involved in all marketing and media communications for the corporation. In preparation for releasing the latest quarterly reports, Jack learned that the reports would show a $50 million loss for the corporation. Before the information was made public, Jack sold all of his shares in the corporation thereby avoiding a large loss when the share price dropped. What should Jack be concerned about:

Question 16 options:

he should have no concerns

he should be concerned about being charged with insider trading

he should be concerned about being accused of breaching his duty of conflict of interest

he should be concerned about being accused of breaching his duty not to abuse corporation opportunity

he should be concerned about how to invest all the money he just made

Question 17(1 point)

In a widely held corporation, share are always:

restricted on transferability

non-voting

preferred

freely transferable

Question 18(1 point)

Every director of a corporation in exercising their powers and discharging their duties shall:

attend every meeting

not quit

act honestly in good faith with a view to the best interests of the corporation

not devalue a shareholders interest

Question 19(1 point)

A corporation:

is required to have one or more directors

cannot sue a director

must have more than one director

Question 20(1 point)

What are the main purposes of by-laws?

to provide the detailed operating rules for a corporation's long-term future

to provide the detailed framework for the corporation's establishment

to provide the detailed operating rules for the subsidiaries of the corporation

to provide the detailed rules for the structure of the corporation

to provide the detailed operating rules for a corporation's day-to-day affairs