Fact Pattern 30-1 Ray Is a Shareholder of Small Biz Company (SBC). When

question 63

Multiple Choice

Fact Pattern 30-1
Ray is a shareholder of Small Biz Company (SBC) . When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 30-1. Ray's suit is a shareholder's

• A) business-judgment rule suit.
• B) derivative suit.
• C) duty-of-care suit.
• D) duty-of-loyalty suit.

---

Definitions:

Consistency Motive

A desire to get feedback that confirms what the person already believes about himself or herself.

Standardized Exam

A type of test that is administered and scored in a consistent manner to ensure fairness and to measure students' performance against common criteria.

English Section

Typically refers to a component or part of a standardized test or examination that assesses language proficiency, especially in areas such as grammar, comprehension, and writing.

Self-Reference Effect

The tendency for individuals to better remember information when it is related personally to them.