Which of the Following Is True Regarding Any Duties of Controlling

question 44

Multiple Choice

Which of the following is true regarding any duties of controlling shareholders in relation to control of a corporation?

• A) Controlling shareholders owe no duties other than to maximize their own wealth.
• B) Controlling shareholders generally have a duty to control the corporation in a fair, just, and equitable manner, known as the standard of entire fairness.
• C) Controlling shareholders may act to maximize their own wealth only so long as they do not intentionally harm and exhibit bad faith toward minority shareholders, a standard known as minority shareholder respect and fair dealing.
• D) Controlling shareholders must appoint minority shareholders to vote a certain percentage of their shares in instances in which the minority shareholders demand that right.

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Definitions:

Story Changes

The alterations or variations that occur in the narration or plot of a story over a period.

Misinformation Effect

The tendency for post-event information to interfere with the memory of the original event, often leading to inaccurate recollections.

Filmed Traffic Accident

A filmed traffic accident is an event where a vehicular collision or road incident is captured on video, which can be used for evidence, analysis, or awareness purposes.

Smashed

To break something into pieces suddenly, noisily, and violently; shattered.