Ch 40 False
6. Most states do not allow directors to participate in board of directors' meetings from remote locations.
False
3. The initial board of directors of a corporation is normally elected at the first annual shareholders' meeting by a majority vote of the shareholders.
False
30. A dividend is a right given by a company to buy stock at a stated price by a specified date.
False
31. Every shareholder is entitled to examine specified corporate records, but only in person, not through an agent.
False
33. Shareholders are personally liable for the debts of a corporation.
False
4. Corporate officers are selected and removed by shareholders.
False
1. Any individual director can act as an agent to bind the corporation.
False
12. Not all directors have a right to access a corporation's books and records, facilities, and promises
False
13. In most states, an individual can be an officer or a director of a corporation, but not both at the same time.
False
18. Directors must engage in self-dealing.
False
2. The executive officers represent the ultimate authority in every corporation.
False
21. As a general rule, shareholders are responsible for the daily management of a corporation.
False
24. Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.
False
26. With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.
False
29. Stock warrants are distribution of corporate profits or income ordered by the directors.
False
