Question 1

Define duty of loyalty and its connection with the business judgment rule.

Accepted Answer

The duty of loyalty is a duty that direc...

Question 2

Anexwell Analytics is looking to strengthen its talent pool by recruiting subject matter experts who can help guide the company's growth.The company hires Kenneth,a data analytics professor from a private college,to serve on its board as a technology adviser.Which of the following roles has Kenneth adopted in the above scenario?

Accepted Answer

A)   outside director
B)   ombudsman
C)   corporate officer
D)   corporate agent

Question 3

Unless terms are staggered,the term of a director's office expires at the next ________ shareholders' meeting following his or her election.

Accepted Answer

A)   annual
B)   special
C)   emergency
D)   extraordinary

Question 4

A derivative action is a(n) ________.

Accepted Answer

A)   lawsuit that a shareholder brings against an offending party on behalf of a corporation
B)   inquiry that the board of directors launches in order to analyze the ethical standards of the corporation
C)   review that officers of the corporation conduct to test the skill sets of their subordinates
D)   audit conducted by registered agents to examine the financial health of the corporation

Question 5

Which of the following is true of a corporate officer?

Accepted Answer

A)   A corporate officer cannot be removed by the board of directors.
B)   A corporate officer has the express authority to bind a corporation to contracts.
C)   A corporate officer is not liable on an unauthorized contract if the corporation does not ratify it.
D)   A corporate officer is responsible for making policy decisions and employing the major officers for the corporation.

Question 6

A shareholder's ________ liability means that they are liable for the debts and obligations of the corporation only to the extent of their capital contribution.

Accepted Answer

A)   limited
B)   product
C)   manufacturer's
D)   vicarious

Question 7

A shareholder's only management duty is to vote on matters like the election of directors and the approval of fundamental changes in the corporation.

Accepted Answer

A) True 
 B)False

Question 8

The written document authorizing a proxy is also called a proxy.

Accepted Answer

A) True 
 B)False

Question 9

A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit is known as a derivative action.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of straight voting?

Accepted Answer

A)   It gives a minority shareholder the advantage in electing the entire board of directors.
B)   It allows shareholders to cast as many votes as the number of shares they own.
C)   It requires a greater than majority of the shares to constitute a quorum of the vote of the shareholders.
D)   It permits voters to procure votes equal to the product of the shares they own and the number of directors to be elected.

Question 11

Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation?

Accepted Answer

A)   duty of loyalty
B)   duty of obedience
C)   business judgment rule
D)   self-dealing

Question 12

A ________ is an agreement that requires a selling shareholder to offer his or her shares for sale to the other parties to the agreement before selling them to anyone else.

Accepted Answer

A)   proxy
B)   buy-and-sell agreement
C)   voting trust
D)   right of right refusal

Question 13

The ________ Act of 2002 is a federal statute that establishes rules to improve corporate governance,prevent fraud,and add transparency to corporate operations.

Accepted Answer

A)   Sarbanes-Oxley
B)   False Claims
C)   Glass-Steagall
D)   Lanham

Question 14

When shareholders of a company wish to meet for the sole purpose of electing a board of directors,they will tend to hold a(n) ________ shareholders' meeting.

Accepted Answer

A)   annual
B)   special
C)   emergency
D)   extraordinary

Question 15

A director or corporate officer who does not attend board meetings regularly would be in violation of ________.

Accepted Answer

A)   self-dealing
B)   duty of care
C)   the business judgment rule
D)   the alter ego doctrine

Question 16

Shareholders can bind the corporation to contracts.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of shareholders?

Accepted Answer

A)   They own the corporation whose shares they also own.
B)   They can bind the corporation that they own to contracts.
C)   They are agents of the corporations they own.
D)   They are directors of the corporations they own.

Question 18

Dean,a director of a business consultancy firm,holds a meeting of the board of directors of the company.During the voting process over a critical issue,Dean unscrupulously casts two votes instead of the one that he is entitled to.Dean's conduct is an example of a ________.

Accepted Answer

A)   breach in the duty of obedience
B)   denial of the right of refusal
C)   piercing of the corporate veil
D)   violation of the business judgment rule

Question 19

According to the provisions set forth by the Sarbanes-Oxley Act,the ________ may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

Accepted Answer

A)   United States International Trade Commission
B)   Federal Reserve System
C)   Federal Communications Commission
D)   Securities and Exchange Commission

Question 20

Under the Sarbanes-Oxley Act,the chief executive officer (CEO)and chief financial officer (CFO)of a public company must file a statement accompanying each annual and quarterly report.

Accepted Answer

A) True 
 B)False

Exam 28: Corporate Governance and the Sarbanes-Oxley Act

The ________ Act of 2002 is a federal statute that establishes rules to improve corporate governance,prevent fraud,and add transparency to corporate operations.

Correct Answer
verified

The written document authorizing a proxy is also called a proxy.

Correct Answer
verified

Which of the following is true of shareholders?

Correct Answer
verified

A shareholder's ________ liability means that they are liable for the debts and obligations of the corporation only to the extent of their capital contribution.

Correct Answer
verified

Shareholders can bind the corporation to contracts.

Correct Answer
verified

Which of the following is true of straight voting?

Correct Answer
verified

Under the Sarbanes-Oxley Act,the chief executive officer (CEO)and chief financial officer (CFO)of a public company must file a statement accompanying each annual and quarterly report.

Correct Answer
verified

Which of the following is true of a corporate officer?

Correct Answer
verified

A shareholder's only management duty is to vote on matters like the election of directors and the approval of fundamental changes in the corporation.

Correct Answer
verified

Define duty of loyalty and its connection with the business judgment rule.

Correct Answer
verified
The duty of loyalty is a duty that direc...
View Answer

Unless terms are staggered,the term of a director's office expires at the next ________ shareholders' meeting following his or her election.

Correct Answer
verified

A derivative action is a(n) ________.

Correct Answer
verified

Correct Answer
verified

A director or corporate officer who does not attend board meetings regularly would be in violation of ________.

Correct Answer
verified

A ________ is an agreement that requires a selling shareholder to offer his or her shares for sale to the other parties to the agreement before selling them to anyone else.

Correct Answer
verified

Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation?

Correct Answer
verified

A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit is known as a derivative action.

Correct Answer
verified

When shareholders of a company wish to meet for the sole purpose of electing a board of directors,they will tend to hold a(n) ________ shareholders' meeting.

Correct Answer
verified

Dean,a director of a business consultancy firm,holds a meeting of the board of directors of the company.During the voting process over a critical issue,Dean unscrupulously casts two votes instead of the one that he is entitled to.Dean's conduct is an example of a ________.

Correct Answer
verified

According to the provisions set forth by the Sarbanes-Oxley Act,the ________ may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

Correct Answer
verified

Exam 28: Corporate Governance and the Sarbanes-Oxley Act

The ________ Act of 2002 is a federal statute that establishes rules to improve corporate governance,prevent fraud,and add transparency to corporate operations.

Correct AnswerverifiedShow Answer

The written document authorizing a proxy is also called a proxy.

Correct AnswerverifiedShow Answer

Which of the following is true of shareholders?

Correct AnswerverifiedShow Answer

A shareholder's ________ liability means that they are liable for the debts and obligations of the corporation only to the extent of their capital contribution.

Correct AnswerverifiedShow Answer

Shareholders can bind the corporation to contracts.

Correct AnswerverifiedShow Answer

Which of the following is true of straight voting?

Correct AnswerverifiedShow Answer

Under the Sarbanes-Oxley Act,the chief executive officer (CEO)and chief financial officer (CFO)of a public company must file a statement accompanying each annual and quarterly report.

Correct AnswerverifiedShow Answer

Which of the following is true of a corporate officer?

Correct AnswerverifiedShow Answer

A shareholder's only management duty is to vote on matters like the election of directors and the approval of fundamental changes in the corporation.

Correct AnswerverifiedShow Answer

Define duty of loyalty and its connection with the business judgment rule.

Correct AnswerverifiedThe duty of loyalty is a duty that direc...View AnswerShow Answer

Unless terms are staggered,the term of a director's office expires at the next ________ shareholders' meeting following his or her election.

Correct AnswerverifiedShow Answer

A derivative action is a(n) ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A director or corporate officer who does not attend board meetings regularly would be in violation of ________.

Correct AnswerverifiedShow Answer

A ________ is an agreement that requires a selling shareholder to offer his or her shares for sale to the other parties to the agreement before selling them to anyone else.

Correct AnswerverifiedShow Answer

Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation?

Correct AnswerverifiedShow Answer

A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit is known as a derivative action.

Correct AnswerverifiedShow Answer

When shareholders of a company wish to meet for the sole purpose of electing a board of directors,they will tend to hold a(n) ________ shareholders' meeting.

Correct AnswerverifiedShow Answer

Dean,a director of a business consultancy firm,holds a meeting of the board of directors of the company.During the voting process over a critical issue,Dean unscrupulously casts two votes instead of the one that he is entitled to.Dean's conduct is an example of a ________.

Correct AnswerverifiedShow Answer

According to the provisions set forth by the Sarbanes-Oxley Act,the ________ may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
The duty of loyalty is a duty that direc...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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