A Director May Be Removed for Which of the Following

question 42

Multiple Choice

A director may be removed for which of the following reasons?

• A) At the will of the president.
• B) In the discretion of the shareholders upon majority vote.
• C) In the discretion of the shareholders upon a two-thirds vote.
• D) In the discretion of other directors upon a majority vote.
• E) For cause.

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Definitions:

Mineral Deposit

A naturally occurring concentration of minerals that can be extracted economically.

Trade-in

An asset given as part-payment for the purchase of a new asset, usually in the context of vehicles.

Commercial Substance

A situation where the future cash flows of an entity change as a result of a transaction, indicating the transaction has economic significance.

Original Cost

The initial purchase price or construction cost of an asset or investment, before depreciation or amortization.