A Corporation May Exempt Itself from Audit Only If

question 42

Multiple Choice

A corporation may exempt itself from audit only if

• A) qualified examiners review the books.
• B) the director agrees.
• C) a civil action has been brought.
• D) all the shareholders agree.
• E) an ultra vires declaration action has commenced.

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by the behavior's consequences, such as reward or punishment.

Insanity Defense

A legal defense strategy in which the defendant claims they were incapable of understanding the nature or wrongfulness of their actions due to mental illness at the time of the crime.

Acts of Passion

Behaviors driven by strong emotions or desires, often without consideration for the consequences.

Durham Rule

Legal principle stating that the presence of a mental disorder is sufficient to absolve an individual of responsibility for a crime.