Ch 40

True or False: Before a shareholder's meeting, a group of shareholders can create a shareholder voting agreement by agreeing in writing to vote their shares together in a specified manner. (True / False)

True

True or False: Corporate officers and other executive employees are hired by the board of directors

True

True or False: Shareholders have the power to vote to elect or remove members of the board of the directors.

True

True or False: Any corporate director who sits on more than one board is engaging in illegal activity

False

True or False: Most voting trusts have no expiration date.

False

True or False: Shareholders do not have the inherent power to remove directors from office for cause by a majority vote.

False

True or False: When a quorum of shareholders is not present at an annual meeting, voting can proceed if the majority of those present agrees.

False

9. The business judgment rule states that: a. directors and officers are immune from liability for exercising poor business judgment in certain circumstances. b. directors and officers are never immune from liability for exercising poor business judgment, regardless of the circumstances. c. directors may never be held liable for corporate harms or losses so long as they have attended

a. directors and officers are immune from liability for exercising poor business judgment in certain circumstances.

Individual corporate directors have the ability, as agents of a corporation, to bind the corporation: a. As long as the articles of incorporation allow it. b. In all situations. c. Not at all, as individual directors do not have agency power.

c. Not at all, as individual directors do not have agency power.

Ordinarily, who is entitled to vote at an annual corporate meeting? a. All past and present shareholders. b. All shareholders designated by the state. c. Only persons who names appear on the corporation's shareholder records as owners.

c. Only persons who names appear on the corporation's shareholder records as owners.

A board of directors does NOT have responsibility over: a. financial decisions, such as issuing shares of stocks. b. the appointment, supervision, and removal of corporate officers. c. the election and removal of members of the board. d. the declaration and payment of corporate dividends.

c. the election and removal of members of the board.