Which of the Following Statements Is True of the Lawsuits

question 11

Multiple Choice

Which of the following statements is true of the lawsuits in which minority shareholders complain that they have been unfairly treated by the directors?

• A)These suits always involve open corporations.
• B)Minority shareholders will always win such suits.
• C)These suits can claim a freeze-out.
• D)Business judgment rule does not apply to such lawsuits.

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Definitions:

Articulate Surface

A surface of a bone that makes a joint with another bone, allowing for varying degrees of movement.

Convex Surface

A curved surface that bulges outward, resembling the exterior of a sphere or circle.

Concave Depression

A rounded or hollowed-out area on a surface or body part, often involved in joint articulation.

Synovial Membranes

Specialized connective tissue that lines the inner surface of capsules of synovial joints and tendon sheaths, facilitating smooth movement.