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.

Understand the implications of bankruptcy for conditional sale agreements and the rights of bona fide purchasers.

Discuss the finance method of assignment of book debts and the concept of crystallization.

Compare and contrast the uses, similarities, and differences between conditional sales agreements and chattel mortgages.

Identify the characteristics that distinguish services from tangible goods.

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws that govern commercial transactions in the United States, aimed at standardizing practices across states.

Counteroffer

A response to an offer in negotiations that presents different terms than originally proposed, effectively rejecting the initial offer.

Original Offer

The initial proposal or terms presented during negotiations or when making a deal, before any modifications are made.

Communicated By Words

Information or messages that are transmitted or conveyed through spoken or written language.