Which of the Following Is True Regarding State Rules of Corporate

question 16

Multiple Choice

Which of the following is true regarding state rules of corporate governance?

• A) Under the U.S. Constitution, a state may only apply its corporate governance rules to corporations incorporated in the state.
• B) California imposes state pro-shareholder rules on quasi-foreign corporations.
• C) There are no state rules of corporate governance because the Securities and Exchange Commission has preempted the field.
• D) By federal law, if a state wishes to impose corporate governance requirements on corporations incorporated in the state, then the same rules must be imposed on corporations operating in the
• State but incorporated in another state.

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Definitions:

Full Control

A situation or condition where an individual or organization has complete authority and power over a particular area or process.

Avoid Greater Harm

A principle or strategy aimed at preventing actions or decisions that could lead to more serious or extensive damage.

End-Results Ethics

An ethical perspective that judges the morality of actions based on the outcomes or consequences they produce.

Pharmaceutical Company

An enterprise that specializes in the research, development, production, and marketing of drugs and medications.