A Derivative Action

question 7

Multiple Choice

A derivative action

• A) is a type of crime that allows a corporation to be punished if a director misbehaves.
• B) allows a corporation to sue a shareholder who refuses to pay the purchase price for his or her shares.
• C) always occurs in connection with a unanimous shareholder agreement.
• D) occurs when a corporation feels compelled by the consequences of one decision to act on another decision.
• E) is an action by someone on behalf of the corporation that can be pursued only with court approval.

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Definitions:

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