What Is a Derivative Action

question 10

Multiple Choice

What is a derivative action?

• A) It is a lawsuit brought on behalf of the corporation by a shareholder when the directors refuse to act.
• B) It is a right of shareholders to protect dilution of their percentage of share ownership.
• C) It is an agreement made in advance among shareholders to vote in a particular manner.
• D) It is a shareholder voting method permitting the holder to distribute his total votes in any manner that he chooses-all for one candidate or several shares for different candidates.
• E) It is a doctrine holding that certain legal consequences attach to an attempt by a corporation to carry out acts that are outside its lawful powers.

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Definitions:

Selective Attention

The cognitive process of focusing on a specific aspect of information while ignoring other perceivable information.

Schizophrenia

A psychiatric disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Disorganized

Refers to a state where systems, objects, or thoughts lack proper structure or arrangement.

Bizarre Behavior

Unusual or eccentric actions that deviate significantly from societal norms and expectations.