Question

1. To prevent majority shareholders from dominating the management and operation of a corporation, there are

1. board of director quorums.
2. cumulative voting.
3. proxies.

2. Mollie purchases plants from a nursery which she in turn sells in her store. Mollie’s store sells plants to builders who replantsthem in the front yards of the homes they build. The plants Mollie purchases and sells are?

1. Personal property because the plants sold by Mollie are not attached to land.
2. Real property because the plants were once attached to land.
3. Real property because Mollie’s customers intend to replant the plants.

Answer 1

Answer 1:

The correct answer is “a. board of director quorums”.

To pass any resolution and for major decisions the board of the corporation require more than a majority of directors to approve any kind of board action.

Answer 2:

The correct answer is “a. Personal property because the plants sold by Mollie are not attached to land”.

It is personal property as it was purchased from nursery and bought for selling it, is movable and not attached to land which she is selling it. Mollie is not concerned if it is used by the builder to be sold as a real estate, so for her it is a “personal property”