Introduction to Directors and Officers Self-Quiz
Who orchestrates and originates
the accounting rules for any company required to report financials in
the U.S. and what are those rules called?
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Which of the following represents
a likely group of individuals to sit on the board of a company that produces
basketball shoes, has had severe economic distress for the past eight
financial quarters, and is backed by several prominent venture capitalists?
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InsideOut Co. has a seven
member board of directors. They are trying to boost the value of their
stock and are trying to better organize their internal operations as one
means of achieving those ends. As concerns the board, what might the company
do to satisfy the market?
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Troubled, Inc. has been sued
by several parties regarding its accounting practices. The board decides
that to help respond to the suit, it will create a subcommittee made up
of several of the firm’s lawyers who are also board members, and
give the group full power to decide on the course of the litigation and
recommend actions to shareholders to help stop the suit. The board’s
actions are:
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Profitable, Inc. has been
doing great business for the last five years. Each year, the company has
made huge amounts of money in various parts of its business line. However,
shareholders have been getting upset because the firm has failed to pay
any dividends during those five years. A group of shareholders believes
that the board is about to engage in a major transaction with all the
spare cash that will have the effect of devastating the firm. As such,
they petition a court in the company’s state of incorporation to
compel the board to pay a dividend before the company squanders the money.
Such an action is likely to result in:
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The absolute minimum that
a state will allow for a board vote to have effect on the company is:
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