Question 42 (1 point) 14 1 15 Listen Owners of stock enjoy preferences with respect to assets and dividends. 17 18 ? 1) concentrated 20 21 2) premium 23 24 3) unconditional 4) preferred 26 27 5) common 29 30 Question 43 (1 point) 32 Listen 33 ? > 5 36 How is the number of corporate directors determined? 1) In the discretion of the president of the corporation 8 39 2) By a vote of the stockholders in compliance with state law I 1 3) According to the corporate articles or bylaws, in compliance with state law 4) According to the number of shares issued 5) According to the amount of profit projected by the incorporators for the first fiscal year of the corporation's existence 45 on 4471 noint) Question 44(1 point) Listen If a corporation has fewer than fifty shareholders, the Revised Model Business Corporation Act allows companies to 1) choose not to file articles of incorporation 2) eliminate the board of directors altogether 3) have as few as seven corporate directors 4) have as few as five corporate directors 5) have as few as three corporate directors 20 Question 46 (1 point) Listen 3 Which of the following is false regarding officers of a corporation? 96 1) Officers are executive managers. 2) Officers run the day-to-day business of the corporation 09 3) In most cases an individual may serve as both a director and an officer. 2 4) The rules of agency do not apply to the work of officers. 5) Qualifications required of officers are set forth in the corporate articles and bylaws. 5 Question 49 (1 point) Listen Self-Centered President. Tina is the new president of "We Manage You," a corporation set up to manage physician practices. Tina has never been very concerned with minority shareholders because she does not believe that they have any influence over the company because they cannot even elect a director. She is told, however, that the corporation has a practice of cumulative voting. An election is coming up in which 10 directors will be elected. Minority shareholders own 2,000 shares while majority shareholders own 8,000 shares. Tina tells her vice president, George, that she wants to ignore minority shareholders and focus her interests on majority shareholders and the directors. She also tells George that she wants to be particularly conscientious toward directors because the directors appoint officers, and she does not believe that she owes any actual duties to shareholders. She further orders George to destroy some documents subpoenaed in a criminal investigation against the company for illegal tax evasion. When George protests, Tina tells him not to worry because officers cannot be held responsible for criminal actions so long as the actions are done as part of the officer's duties. She explains to him that only the corporation can be charged with liability in such cases. How many votes will the minority shareholders have in the election? 1) 2.000 2) 4,000 3) 6,000 4) 10,000 5) 20,000

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