The Existence of the Derivative Action Remedy Means That Directors

question 25

True/False

The existence of the derivative action remedy means that directors are unable to treat the corporation as their own personal fiefdom with impunity.

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Definitions:

Phenomena

Observable events or occurrences that can be investigated scientifically to understand their underlying principles.

Theory

An organized system of assumptions and principles that purports to explain a specified set of phenomena and their interrelationships.

Informed Consent

The doctrine that anyone who participates in human research must do so voluntarily and must know enough about the study to make an intelligent decision about whether to take part.

APA Code

The ethical guidelines set by the American Psychological Association for psychologists.