Business and Personal LawChapter 17:
Operating a CorporationSelf Check AnswersSection 17.1 - Directors: elected by shareholders; make broad policy decisions. Officers: chosen by directors; run day-to-day affairs.
- the right to receive a stock certificate and dividends, examine the corporate books, transfer all shares, maintain a proportionate share of stock, exercise a vote for each share of stock owned, and sue
- business judgment rule, fairness rule
Section 17.2 - Stocks represent a shareholder's investment in a corporation; bonds are notes issued for money borrowed by the corporation.
- offer to buy a specific number of shares at a specific price, also called a takeover bid
- corporation repeatedly conducts business illegally; fails to file annual reports, pay franchise taxes, or maintain a statutory agent for service of process; exceeds its authority; or is formed fraudulently
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