TJ_Comp 20_TB_Ch48

TJ_Comp 20_TB_Ch48 - Chapter 48MANAGEMENT OF CORPORATIONS...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 48—MANAGEMENT OF CORPORATIONS TRUE/FALSE 1. In a large corporation, the shareholders are often the managers of the corporation. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 2. Electing directors who most reflect the shareholders' interests and attitudes is the most effective form of shareholder control. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. The sale of corporate assets outside the regular course of a corporation's business would require a vote of the shareholders. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. Ordinarily, action by shareholders has legal effect as a corporate act only if such action is taken at a regular or special meeting of the stockholders. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. The notice of a special meeting of shareholders must include a statement of the nature of the business to be transacted and no other business may be transacted at such a meeting. ANS: T TOP: AICAP BB-Legal MSC: AACSB Analytic 6. Action at a shareholders' meeting can be taken only while a quorum is present. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. Action taken by shareholders without holding a meeting is valid under the RMBCA if it is evidenced by a written consent signed by all the shareholders entitled to vote on the action. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. The management of a corporation is usually under the control of a board of directors elected by the stockholders. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 9. All states stipulate that there shall be no fewer than three directors for each corporation. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. A board of directors may enter into any contract or transaction necessary to carry out the business for which the corporation was formed. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11. A director is disqualified from taking part in corporate action with respect to a matter in which the dir- ector has a conflicting interest. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 12. A corporation generally may avoid a transaction because of a director's secret disqualification, for ex- ample, a conflict of interest. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. Directors usually are allowed to vote by proxy. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 14. Most states permit action to be taken by the board of directors without holding an actual meeting. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 15. Directors who participate without objection in a meeting held other than as specified in the bylaws can object later regarding the validity of the meeting. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 16. Directors and officers act in a fiduciary capacity. ANS: T
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

Page1 / 8

TJ_Comp 20_TB_Ch48 - Chapter 48MANAGEMENT OF CORPORATIONS...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online