Which of the Following Is True of a Derivative Action

question 5

Multiple Choice

Which of the following is true of a derivative action?

• A) A settlement of a derivative action requires court approval.
• B) A shareholder's successful derivative action entails the damages to be awarded solely to the shareholder.
• C) A derivative action is brought by the corporation against an offending party.
• D) A board member who causes harm to the corporation is legally protected from a derivation action.

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Definitions:

Vodka

A clear distilled alcoholic beverage of Russian origin made primarily from water and ethanol, sometimes with traces of impurities and flavorings.

Investments

The act of allocating resources with the expectation of generating an income or profit, often through acquiring assets like stocks, bonds, or real estate.

Business

Any organization or entrepreneurial entity engaged in commercial, professional, or industrial activities.

Assessed Values

The valuation placed on a property by a public tax assessor for purposes of taxation.