Question

Which of the following is not true about corporate directors? the initial board is often specified...

Which of the following is not true about corporate directors?

the initial board is often specified in the articles of incorporation
directors are subject to a fiduciary duty of loyalty
directors must always act to preserve the corporation
directors may be removed from office for breach of duty
all of the other choices are true

The New York Stock Exchange is an example of a stock exchange where:

the stock of sole proprietorships can be traded
the stock of public corporations can be traded
the stock of private corporations can be traded
the stock of public corporations cannot be traded
the stock of public corporations can be sold but not bought

Professional corporations are now allowed:

in all states
in about half the states
in some states
in a few of the more business friendly states
none of the other choices are correct

The owner of a sole proprietorship:

is legally the same as the business
is taxed the same as the business
may hire any number of employees
is legally the same as the business and is taxed the same as the business
is legally the same as the business and is taxed the same as the business and may hire any number of employees

The governing committee of a corporation is the:

board of presidents
president
board of directors
board of shareholders
board of managers

In general, if there is an error in a contract and if the other party should have known of the error:

the contract cannot be enforced to allow one party to profit from a simple error
the contract will still be enforced so long as both parties had the chance to read the contract
some states will still enforce the contract
the state Supreme Court will have to decide if the contract should be enforced

none of the other choices are correct

Homework Answers

Answer #1

(1) The initial board of directors is named in the corporation's article of association. The Director can be removed for breach of duty and has a fiduciary duty of loyalty towards the corporation. However, the director under all circumstances should preserve the corporation's shareholders and not the corporation (the corporation's management per see).

Hence, the correct option is (C).

NOTE: Please raise a separate query for solutions to the remaining questions.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Directors and officers are not prohibited from entering into transactions with the corporation. true false...
1. Directors and officers are not prohibited from entering into transactions with the corporation. true false 2.A basic principle of corporation law is that: here is an established market for the stock. 3.Vacancies on the board can be filled: a.by appointment by the chief executive officer of a corporation b. only by a vote of the shareholders c.by appointment by the chairperson of the board d. only by a vote of the corporation's employees 4.A corporation is liable for all...
1.In M&A transactions, a Target’s Board of Directors is concern about their fiduciary responsibility to shareholders....
1.In M&A transactions, a Target’s Board of Directors is concern about their fiduciary responsibility to shareholders. They must be assured that shareholders are receiving the proper value for their investment. True or False 2.An astute bidder should always analyze the Target firm’s possible defenses, such as golden parachutes for key employees and poison pills, before making a bid. True or False 3.The accumulation of a Target firm’s stock by arbitrageurs makes the subsequent purchases of blocks of stock by the...
1.) The basic rules governing how a corporation is organized and how it conducts its business...
1.) The basic rules governing how a corporation is organized and how it conducts its business are known as _____. a. certificates of organization b. corporate bylaws c. prospectuses d. articles of incorporation 2.) A _____ is a legal business entity that offers limited liability to all of its owners. a. Limited partnership b. General partnership c. Sole proprietorship d. C corporation 3.) How is the formation of limited liability companies (LLCs) similar to the formation of corporations? a. Similar...
Read the following and answer the related questions that follow it. Auric plc is a mining...
Read the following and answer the related questions that follow it. Auric plc is a mining company, whose main business consists of open cast mining. It has Articles of Association that are in the form of model Articles. The board of directors includes Penny, Howard and Emily. At a recent board meeting, the directors considered an offer from Trek Mines plc to sell land adjoining one of Auric plc’s mining sites for £550,000. The board of Auric plc decided that...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into account when the court disqualified him as a director: a.Loss suffered by the shareholders. b.Dishonest conduct; c.Abuse of trust; d.His negotiation skills as a director; e.Loss suffered by the company; 1 points   QUESTION 2 Select the statement that is untrue. Remedies for breach of fiduciary duty are: a.Recission of contract. b.Constructive trust; c.Account for profits; d.Equitable compensation; e.Dejunction; 1 points   QUESTION 3 Are directors...
Which of the following is true about a promissory estoppel? It is invoked in cases having...
Which of the following is true about a promissory estoppel? It is invoked in cases having incompetent parties. It permits a court to order enforcement of a contract that lacks consideration. C) It allows for a party to claim goods that were never paid for. D) It is invoked in cases that involve a promissory note. 2. Which of the following is true for a minor under the infancy doctrine? A) A minor is bound to the adult's decisions in...
Question 8 1 pts Which of the following statements regarding the business judgment rule is/are TRUE?...
Question 8 1 pts Which of the following statements regarding the business judgment rule is/are TRUE? Group of answer choices A shareholder may choose whether to file a derivative lawsuit or alternatively demand that the board of directors take action. The party in interest of a derivative lawsuit is the shareholder who files the lawsuit. A court will not second-guess directors who vote to block a corporate merger, as long as they view the merger as a hostile takeover. The...
The Partnership Act 1890 section 24 sets out rights of partners (in default of their own...
The Partnership Act 1890 section 24 sets out rights of partners (in default of their own agreement). Which one of the following is not included in section 24? Group of answer choices The right to share equally in the capital and profits of the business. The right to be indemnified by the firm for any liabilities incurred or payments made in the course of the firm's business. The right to a salary The right to take part in the management...
The responsibility of the directors of a corporation is to provide a return to shareholders on...
The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation . . . in other words, shareholders expect to make money on their investment. Corporations such as Facebook, Google, and Apple are financed through the sale of billions and billions of dollars in shares purchased by investors. Sometimes, however, the duty to maximize profits runs contrary to legal, but still questionable, business opportunities. Assume that you’re the director...
This is just a discussion post from my classmate. I just need to respond. Based off...
This is just a discussion post from my classmate. I just need to respond. Based off of what is written, please answer with a simple analysis of what's written. (example: Interesting post, I see that...) 1. Discuss each of the following business entity types including ownership, financial and legal and tax issues related to each type. Sole Proprietorship A sole proprietorship is owned by only one person and the firm and the owner are considered one and the same from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT