Ch 40 True
10. Publicly held corporations typically create committees of directors and delegate certain tasks to these committees.
True
11. Each director present at a board meeting has one vote.
True
14. Corporate officers can normally be removed by the board of directors without cause.
True
15. Directors can delegate work to corporate officers and employees.
True
17. Directors are expected to conduct a reasonable investigation of a situation before making a decision.
True
19. A director must abstain from voting on a proposed transaction in which he or she has a personal interest.
True
20. Corporate directors and officers are insurers of business success.
True
22. Shareholders must approve fundamental changes affecting a corporation.
True
23. For shareholders to act during a shareholders' meeting, a quorum must be present.
True
25. The articles of incorporation can exclude or limit shareholders' voting rights.
True
27. Since stock is intangible personal property, the ownership right to stock exists independently of a stock certificate.
True
28. Dividends can be paid in the stock of corporations other than the corporation that is paying the dividends.
True
32. When the corporation is harmed by the actions of a third party, the directors can bring a lawsuit in the name of the corporation against that party.
True
34. In some states, a shareholder who receives watered stock may be liable to creditors of the corporation for unpaid corporate debts.
True
35. In some situations, a majority shareholder owes a fiduciary duty to minority shareholders.
True
5. Many states permit a corporate board to have fewer than three directors.
True
7. A vacancy on the board of directors can be filled by the board itself.
True
9. The minimum number of members of a body of officials that must be present for business to be validly transacted is a quorum.
True
