QUESTION 31

1.The shares of a corporation can generally be sold without the approval of the other shareholders.

True

False

QUESTION 32

1.A tender offer is an offer made directly to the board of directors of the corporation to be acquired.

True

False

QUESTION 33

1.Ordinarily, a merger requires approval of both boards of directors and the shareholders of both corporations.

True

False

QUESTION 34

1.Which of the following isnota characteristic of a corporation?

Unlimited liability of owners

Free transferability of shares

Perpetual existence

Centralized management

QUESTION 35

1.Which of the following generally doesnotneed to be included with the articles of incorporation?

The period of duration of the corporation

b.The classes and preferences of stock

Whether preemption rights are given to the stockholders

A copy of the by-laws

QUESTION 36

1.The first meeting of the board of directors after the bylaws are filed is called the:

Promoters' meeting.

Adoption meeting.

Initiation meeting.

Organizational meeting.

QUESTION 37

1.A principal-agent relationship is formed when an employer hires an employee and pays that employee a salary.

True

False

QUESTION 38

1.The work-related test takes into consideration the motivation of the agent when he commits an intentional test.

True

False

QUESTION 39

1.In its early years, the American Federation of Labor allowed only skilled labor members to join.

True

False

QUESTION 40

1.Agency always requires:

Both an agent and principal who are adults.

A written contract.

Consideration on the part of both the principal and the agent.

Intent by both the principal and agent to be in the arrangement.