When Directors and Officers Do Not Act in the Best

question 11

True/False

When directors and officers do not act in the best interests of their corporations,the shareholders may sue them on the company's behalf.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Paid-In Capital

The amount of money a company has received from shareholders in exchange for shares of stock.

Capital Surplus

Capital surplus refers to the amount that a company raises from the sale of its shares above their par value, often reflecting additional investment or gains retained in the business.

Legal Capital

The portion of a company's equity that cannot be distributed to shareholders and must be maintained as a financial protection for creditors.