Because a Director of a Closely Held Corporation Breached His

question 91

Multiple Choice

Because a director of a closely held corporation breached his duties to the corporation, the corporation lost $15,000. Despite the urging of the shareholders, the board of directors refused to begin an action on behalf of the corporation. Which one of the following provisions would aid the shareholders?

• A) Relief-from-oppression provisions
• B) Pre-emptive right provisions
• C) Indoor-management rule
• D) Derivative-action provisions
• E) Dissent procedure

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Definitions:

Internal Rate Of Return

Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments by calculating the rate of return that sets the net present value of all cash flows to zero.

Economic Ratings

Evaluations or rankings based on financial performance, stability, or investment attractiveness of entities or countries.

Project Champions

Individuals within an organization who advocate for and support a project, ensuring it receives necessary resources and attention.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.