Fact Pattern 26-1

question 66

Multiple Choice

Fact Pattern 26-1
Ray is a shareholder of Small Biz Company (SBC) .When the direc?tors 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 26-1.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.

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Definitions:

Common Tick

A small arachnid parasite that feeds on the blood of mammals, birds, and sometimes amphibians and reptiles, known for transmitting diseases.

Shrubs

Woody plants with multiple stems that are smaller than trees, often found under the forest canopy or used in landscaping.

Secondary Ecological Succession

The process of change in the species structure of an ecological community that occurs in an area where the soil remains intact after a disturbance.

Mature Forest

A forest ecosystem that has reached a stable stage of development characterized by a diverse mix of tree species and ages, supporting a complex community of plants and animals.