QUESTION 14

1. To which group does the law give primary control over the corporation?
2. a.Officers.
3. b.Directors.
4. c.Shareholders.

4 points

QUESTION 15

1. Which of the following isnota stage in the lifecycle of a corporation?
2. a.Dissolution.
3. b.Winding up.
4. c.Incorporation.
5. d.Liquidation.

4 points

QUESTION 16

1. Which of the following isnota way for a director to escape liability for an interested transaction?
2. a.A vote of the disinterested shareholders.
3. b.Showing the transaction is fair under the entire fairness standard.
4. c.A vote of the disinterested directors.
5. d.A vote of the disinterested officers.

4 points

QUESTION 17

1. Which of the following parties donothave the power to initiate corporate dissolution?
2. a.The board of directors.
3. b.The shareholders.
4. c.The secretary of state in state in which corporation is incorporated.
5. d.A court of law.
6. e.All of the above may initiate corporate dissolution.

4 points

QUESTION 18

1. The right of shareholders to dividends means that the corporation must pay dividends if it can afford them.
2. True
3. False

4 points

QUESTION 19

1. Which of the following exemptions doesnotcap the amount of a securities offering?
2. a.Regulation A.
3. b.Section 4(a)(6) Regulation Crowdfunding.
4. c.Rule 506.
5. d.Rule 504.

4 points

QUESTION 20

1. Which group has greater rights to inspect corporate records?
2. a.Shareholders.
3. b.Directors.

4 points

QUESTION 21

1. Shareholders in a corporation are entitled to which of the following rights?
2. a.Right to prevent corporate borrowing.
3. b.Right to elect officers.
4. c.Right to receive monthly dividends.
5. d.Right to approve dissolution.

4 points

QUESTION 22

1. The business judgment rule effectively insulates directors from which type of claim?
2. a.Breach of the duty of care.
3. b.Breach of the duty of loyalty.
4. c.Breach of the duty of good faith.
5. d.Tort claims.