A Corporation Commits an Ultra Vires Act When It ________

question 118

Multiple Choice

A corporation commits an ultra vires act when it ________.

• A)creates a contract outside the scope of its powers
• B)hires incompetent managers
• C)hires employees with criminal backgrounds
• D)refuses to declare dividends
• E)refuses to declare a stock split

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Definitions:

Prompt Investigation

A swift and thorough examination or inquiry conducted to gather facts, especially in response to an incident or allegation.

Publicity

The act of publicizing or promoting someone or something, typically through media coverage to gain public attention.

Videoconferencing

A technology that allows individuals in different locations to hold face-to-face meetings without needing to be in the same place.

Participant Anxiety

Relates to the discomfort or nervousness individuals may feel when taking part in a study, event, or activity.