Denise,Ervin,and Flem Occupy the Positions of Directors on the Board

question 5

Multiple Choice

Denise,Ervin,and Flem occupy the positions of directors on the board of Gallery Corporation.As directors,they may not

• A)authorize major corporate policy decisions.
• B)decide to issue stock and bonds,and declare dividends.
• C)select and remove corporate officers.
• D)support businesses that directly compete with Gallery.

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Definitions:

Underwriter

In insurance law, the insurer, or the one assuming a risk in return for the payment of a premium.

Premium

The amount paid for an insurance policy, reflecting the cost of coverage.

Insurable Interest

An interest either in a person’s life or well-being or in property that is sufficiently substantial to justify insuring against injury to or death of the person or damage to the property.

Enforceable

Describing a legal agreement or obligation that can be upheld and compelled by law through legal action.