True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Corporate officers govern every corporation.
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2.
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Some
states permit some corporations to eliminate the board of directors.
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3.
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A
director is elected by a majority vote of the other members of the board.
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4.
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A
director can be removed from a corporate board for cause.
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5.
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Shareholders may not vote to remove members of the board of
directors.
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6.
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A
director is always a fiduciary of a corporation.
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7.
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Corporate officers can be empowered to make decisions relating to ordinary corporate
affairs.
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8.
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A
board of directors generally makes major corporate policy decisions.
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9.
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Directors are required to use a reasonable amount of supervision over the corporate
officers.
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10.
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Shareholders may not vote by proxy.
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11.
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The
ownership right to stock exists independently of the stock certificate.
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12.
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Preemptive rights entitle shareholders to bring a derivative suit against the
corporation.
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13.
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Dividends may be paid from any corporate funds at the discretion of the
directors.
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14.
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Under
some circumstances, a corporation can refuse a shareholder's request to inspect corporate
records.
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15.
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When
shares are transferred, the new owner obtains the right to vote the shares before the new ownership
is recorded in corporate stock books.
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16.
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Persons whose names appear on a corporation's shareholder records as owners are
ordinarily entitled to vote.
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17.
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When
shareholders are deadlocked, a court may order the dissolution of a corporation.
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18.
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A $10
issued par-value share that is sold initially for $8 is watered stock.
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19.
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Par-value shares do not have a specific face value.
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20.
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A
shareholder that owns sufficient shares to exercise de facto control over a corporation owes a
fiduciary duty to the minority shareholders.
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