Question 1

Directors, but not officers, are fiduciaries of the corporation.

Accepted Answer

A) True 
 B)False

Question 2

A director's right to access the corporation's books can be restricted by the corporate articles.

Accepted Answer

A) True 
 B)False

Question 3

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions related to corporate affairs rests with Metro's

Accepted Answer

A)   board of directors.
B)   high-level managers.
C)   chief executive officer.
D)   shareholders.

Question 4

The executive committee of a publicly held corporation handles

Accepted Answer

A)   the selection, compensation, and oversight of accountants who audit the firm's financial records.
B)   interim business decisions between board meetings.
C)   dividends, amendments to the bylaws, and the issuance of stock.
D)   none of the choices.

Question 5

Deb is a director and Erv is an officer of Fast Food Inc. Liability for the firm's intentional disregard of consumer-protection statutes may extend to

Accepted Answer

A)   Deb only.
B)   Erv only.
C)   Deb and Erv
D)   none of the choices.

Question 6

Because of their positions within the corporation, directors can use confidential corporate information for personal advantage.

Accepted Answer

A) True 
 B)False

Question 7

Liability for negligence in the performance of corporate duties may extend to

Accepted Answer

A)   directors only.
B)   officers only.
C)   directors and officers.
D)   none of the choices.

Question 8

The number of directors that serve on a corporate board is determined by its

Accepted Answer

A)   articles of incorporation.
B)   bylaws.
C)   board of directors.
D)   quorum.

Question 9

To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.

Accepted Answer

A) True 
 B)False

Question 10

If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.

Accepted Answer

A) True 
 B)False

Question 11

Because of officers' positions within the corporation, they can be held liable for negligence if their failure to exercise due care results in harm to the firm.

Accepted Answer

A) True 
 B)False

Question 12

The board of directors conducts business by holding formal meetings with recorded minutes.

Accepted Answer

A) True 
 B)False

Exam 34: Corporate Directors, Officers, and Shareholders

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions related to corporate affairs rests with Metro's

Correct Answer
verified

Because of their positions within the corporation, directors can use confidential corporate information for personal advantage.

Correct Answer
verified

To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.

Correct Answer
verified

If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.

Correct Answer
verified

Because of officers' positions within the corporation, they can be held liable for negligence if their failure to exercise due care results in harm to the firm.

Correct Answer
verified

Liability for negligence in the performance of corporate duties may extend to

Correct Answer
verified

The number of directors that serve on a corporate board is determined by its

Correct Answer
verified

Directors, but not officers, are fiduciaries of the corporation.

Correct Answer
verified

The executive committee of a publicly held corporation handles

Correct Answer
verified

A director's right to access the corporation's books can be restricted by the corporate articles.

Correct Answer
verified

The board of directors conducts business by holding formal meetings with recorded minutes.

Correct Answer
verified

Deb is a director and Erv is an officer of Fast Food Inc. Liability for the firm's intentional disregard of consumer-protection statutes may extend to

Correct Answer
verified

Exam 34: Corporate Directors, Officers, and Shareholders

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions related to corporate affairs rests with Metro's

Correct AnswerverifiedShow Answer

Because of their positions within the corporation, directors can use confidential corporate information for personal advantage.

Correct AnswerverifiedShow Answer

To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.

Correct AnswerverifiedShow Answer

If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.

Correct AnswerverifiedShow Answer

Because of officers' positions within the corporation, they can be held liable for negligence if their failure to exercise due care results in harm to the firm.

Correct AnswerverifiedShow Answer

Liability for negligence in the performance of corporate duties may extend to

Correct AnswerverifiedShow Answer

The number of directors that serve on a corporate board is determined by its

Correct AnswerverifiedShow Answer

Directors, but not officers, are fiduciaries of the corporation.

Correct AnswerverifiedShow Answer

The executive committee of a publicly held corporation handles

Correct AnswerverifiedShow Answer

A director's right to access the corporation's books can be restricted by the corporate articles.

Correct AnswerverifiedShow Answer

The board of directors conducts business by holding formal meetings with recorded minutes.

Correct AnswerverifiedShow Answer

Deb is a director and Erv is an officer of Fast Food Inc. Liability for the firm's intentional disregard of consumer-protection statutes may extend to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified