Because a Director of a Closely Held Corporation Breached His

question 68

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) preemptive right provisions
• C) indoor-management rule
• D) derivative-action provisions
• E) dissent procedure

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Definitions:

T-Shirts

A type of clothing characterized by short sleeves, a round neckline, and no collar, typically made of cotton fabric.

Coffee

A beverage made from roasted and ground beans of the coffee plant, commonly consumed for its stimulating effects.

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives.

Utility

represents the total satisfaction received from consuming a good or service.