If a Shareholder Class Action Suit Is Unsuccessful and Has

question 58

Multiple Choice

If a shareholder class action suit is unsuccessful and has no reasonable foundation,the court may order the suing shareholder to pay:

• A)the defendants' punitive damages.
• B)the defendants' reasonable litigation expenses,including attorney's fees.
• C)the defendants' compensatory damages for any damage to their reputations.
• D)the defendants' reasonable litigation expenses,excluding attorney's fees.

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Definitions:

Single Sum

A lump-sum amount of money taken in a single payment rather than in installments over time.

Owner Control

The extent to which the owners of a business have the power to make decisions and influence the company's operations and strategic direction.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental, which pay interest at predetermined intervals.

Notes Payable

A written agreement where the borrower promises to pay back a certain amount of money, under specific terms, to the lender at a future date.