Rita and Susan Want to Form and Do Business as Trips

question 30

Multiple Choice

Rita and Susan want to form and do business as Trips & Travel Agency,Inc. They will serve as the firm's directors and officers,and will initially hold all of the stock in the company. A corporation is owned by

• A)the board of directors.
• B)the officers.
• C)the employees.
• D)the shareholders.

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Definitions:

Causation

The relationship between cause and effect, where one event (the cause) directly leads to the occurrence of another event (the effect).

Duty of Care

A legal obligation imposed on individuals or organizations to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Battery

A civil wrong that occurs when one person intentionally and voluntarily brings about a nonconsented harmful or offensive contact with a person or something closely associated with him or her. Battery requires an actual contact.

Defense of Property

The right to use reasonable force to protect one's property from harm or theft.