A Stockholder-Approved Amendment to the Certificate of Incorporation May Indemnify

question 14

Multiple Choice

A stockholder-approved amendment to the certificate of incorporation may indemnify directors who: ______.

• A) acted in bad faith.
• B) acted negligently.
• C) breached their duty of loyalty.
• D) gained an improper personal benefit.

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Definitions:

Break-even Level

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Earnings per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.

Repurchase Shares

A corporate action where a company buys back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Stock Outstanding

The total shares of a corporation's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.