Shareholders Have a Right to Bring an Action Against the Directors

question 26

True/False

Shareholders have a right to bring an action against the directors on behalf of the company when the directors fail in their duty to the corporation.

---

Definitions:

Producer Surplus

The gap between the price at which suppliers are prepared to offer a product and the actual amount they get for it.

Upward-Sloping Supply Curve

A graph showing that as the price of a good increases, the amount suppliers are willing to produce also increases.

Producer Surplus

The dissimilarity between the baseline price producers accept for a good or service and the actual price paid to them.

Upward-Sloping Supply Curve

Illustrates the principle that as the price of a good or service increases, producers are willing and able to supply more of it, reflecting a direct relationship between price and quantity supplied.