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:

Pruning

In neuroscience, the process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neuronal transmissions.

Recommended Position

A stance or viewpoint endorsed by an authority or expert, typically based on evidence or consensus in a specific field.

Neural Connections

the links between neurons in the brain that enable communication through neurotransmitters, forming the basis for all brain functions, including thought and emotion.

Pruning Process

Neural pruning is the process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.