Which of the Following May Be Used to Redress the Ultra

question 26

Multiple Choice

Which of the following may be used to redress the ultra vires acts committed by a corporation?

• A)Proceeding by shareholders for an injunction.
• B)Suit by the corporation or shareholders derivatively against present or former directors or officers for commission of the acts.
• C)A proceeding by the attorney general of the state of incorporation to enjoin it from the transaction of unauthorized business.
• D)All of the above may be used.

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Definitions:

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates or other factors.

Government Spending

The total amount of public expenditure by a government, including spending on defense, education, public infrastructure, and welfare programs.

Private Investment

The expenditure on capital goods by private sector firms or individuals in order to generate future income or profits, excluding government spending.

Crowding-In Effect

An increase in private sector spending stimulated by federal budget deficits financed by U.S. Treasury borrowing.