Question 1

What is the meaning of ex officio authority?

Accepted Answer

The answer of What is the meaning of ex officio...

Question 2

A corporation is:

Accepted Answer

A corporation is liable for all torts committed by its employees while acting in the course of and within the scope of their employment. This may be true even when the corporation has instructed the employee to avoid the act. This rule is a simple application of the agency concept of respondeat superior.

Question 3

Write a note on indemnification in corporations.

Accepted Answer

The answer of Write a note on indemnification in corporations....

Question 4

Briefly write about the three fiduciary duties that officers and directors owe the corporation.

Accepted Answer

The answer of Briefly write about the three fiduciary duties...

Question 5

What are the three elements that must be met before directors or officers may be found to have usurped a corporate opportunity?

Accepted Answer

The answer of What are the three elements that must...

Question 6

A director who has acted in bad faith or who is found liable to the corporation:

Accepted Answer

An officer or director who has acted in bad faith or who is found liable to the corporation may not be indemnified under any circumstances. Further, the SEC will oppose on public policy grounds indemnification of damages sustained as a result of violations of the federal securities laws.

Question 7

Which of the following is true of liability for torts and crimes in corporations?

Accepted Answer

A corporate officer can be found criminally liable for the illegal behavior of a subordinate when the officer (1) knew of or should have known of the illegal conduct and (2) failed to take reasonable measures to prevent it.

Question 8

In cases where an officer or director has been found guilty of a crime,he or she may be indemnified under voluntary indemnification if:

Accepted Answer

In cases in which the officer or director is found guilty, he may be indemnified under voluntary indemnification if he acted in a manner that he believed not to be opposed to the corporation's best interests and had no reasonable cause to believe his conduct was unlawful.

Question 9

Which of the following acts requires CEOs and CFOs of publicly traded corporations to certify that,to their knowledge,all financial information in quarterly and annual reports is not false or misleading?

Accepted Answer

The Sarbanes-Oxley Act requires CEOs and CFOs of publicly traded corporations to certify that, to their knowledge, all financial information in quarterly and annual reports is not false or misleading. If they certify false or misleading information, they are subject to fines of $5 million and up to 20 years' imprisonment.

Question 10

Defensive devices adopted by a board to protect an original merger transaction must withstand judicial scrutiny under an enhanced standard of review.Describe the key features of the enhanced judicial scrutiny test in this scenario.

Accepted Answer

The answer of Defensive devices adopted by a board to...

Quiz 29: Management of the Corporate Business