To conduct business at a shareholders' meeting, a _____________________ of the outstanding shares must be represented at the meeting.

Multiple Choice

• quorum
• derivative
• minority block
• proxy
• voting trust

Which of the following is a promise among shareholders regarding how they will vote their shares?

Multiple Choice

• Quorum
• Shareholder voting agreement
• Share exchange
• Voting trust
• Irrevocable proxy

Which of the following isnota way in which corporation can distribute its assets?

Multiple Choice

• Distributing a property dividend
• Distributing a cash dividend
• Repurchasing shares through a call or redemption option
• Repurchasing shares on the open market
• Distributing a share dividend

Unless it would be __________________, a shareholder who seeks to bring a derivative action must first _________________________.

Multiple Choice

• costly; seek a settlement
• futile; seek a settlement
• successful; demand that the board of directors bring the suit
• futile; seek certification of a class action
• futile; demand that the board of directors bring the suit

The Model Business Corporation Act grants shareholders a qualified right of inspection of all of the following, except:

Multiple Choice

• board minutes.
• minutes of shareholder meetings that are more than three years old.
• accounting records.
• an alphabetical listing of the shareholders entitled to notice of a meeting, including the number of shares owned.
• committee minutes.

Shareholders who disagree with specified fundamental corporate transactions have ______________________ rights, which require the corporation to pay the shareholders ______________________ of their shares.

Multiple Choice

• inspection rights; the fair value
• dissenters'; the fair value
• preemptive; half the value
• dissenters'; double the value
• preemptive; the fair value

Republic Corp. has called for a shareholder's meeting. Which of the following is required toWhich of the following rights is an option to subscribe to a new issuance of shares in proportion to the shareholder's current interest in the corporation?

Multiple Choice

• Preemptive rights
• Information rights
• Inspection rights
• Dissolution rights
• Dissenters' rights

___conduct business at the meeting?

Multiple Choice

• A derivative suit
• A proxy
• A quorum of outstanding shares
• A voting trust
• A minority block of shares

Republic Corp. has six shareholders. The shareholders enter into a permanent agreement stating that they will agree to vote for each other as directors, so that all of them will be elected to the board of directors. This is an example of a(n) __________.

Multiple Choice

• quorum
• shareholder voting agreement
• irrevocable proxy
• voting trust
• share exchange

__ is not a way in which corporation can distribute its assets.

Multiple Choice

• Repurchasing shares on the open market
• Distributing a share dividend
• Distributing a cash dividend
• Distributing a property dividend
• Repurchasing shares through a call or redemption option

A shareholder who seeks to bring a derivative action must first _________________________, unless it would be __________________ to do so.

Multiple Choice

• seek a settlement; costly
• seek certification of a class action; successful
• demand that the board of directors bring the suit; futile
• demand that the board of directors bring the suit; successful
• seek certification of a class action; futile

According to the Model Business Corporation Act, a shareholder is only entitled to inspect ________________________ if she makes a demand in good faith and has a proper purpose for the inspection.

Multiple Choice

• the minutes of shareholder meetings within the past three years
• the articles of incorporation
• accounting records
• an alphabetical listing of the shareholders entitled to notice of a meeting (including the number of shares owned)
• the corporation's bylaws

Kathleen disagrees with a decision that the board of directors of Ydserv, Inc., has made to acquire a new product line. It is costly, risky, and will lead to major short-term losses for Ydserv and a significant decrease in the share price. She wants the corporation to pay her the fair value of her shares so she can exit. What rights provide her this option?

Multiple Choice

• Preemptive rights
• Dissenters' rights
• Dissolution rights
• Inspection rights
• Information rights

Which of the following is a shareholder control device that is perpetual, must be written, and is binding only on those shareholders who sign it?

Multiple Choice

• Quorum
• Voting trust
• Shareholder voting agreement
• Share exchange
• Irrevocable proxy

Which of the following rights is an option to subscribe to a new issuance of shares in proportion to the shareholder's current interest in the corporation?

Multiple Choice

• Preemptive rights
• Information rights
• Inspection rights
• Dissolution rights
• Dissenters' rights