Under the Model Business Corporation Act (MBCA), a Corporation Does

question 48

Multiple Choice

Under the Model Business Corporation Act (MBCA) , a corporation does not need shareholder approval to purchase securities out of _____ surplus.

• A) equity
• B) unrestricted earned
• C) capital
• D) restricted earned

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Definitions:

Tort Action

A legal action for civil wrongs that cause harm or loss, leading to legal liability for the person who commits the tort.

Actual Malice

A condition that exists when a person makes a statement with either knowledge of its falsity or reckless disregard for the truth. In a defamation suit, a statement made about a public figure normally must be made with actual malice for liability to be incurred.

Defamation

The act of damaging the reputation of a person or a group through false statements, either spoken (slander) or written (libel).

Public Figure

An individual in the public limelight. Public figures include government officials and politicians, movie stars, well-known businesspersons, and generally anybody who becomes known to the public because of his or her position or activities.