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Contemporary Canadian Business Law

Business

Quiz 17 :

Corporation Law

Quiz 17 :

Corporation Law

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What does the business judgment rule mean?
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ABC company is insolvent. It has two employees to which it owes $7,000 in wages for the last month, owes Canada Revenue Agency $15,000 and the Bank of Winnipeg $20,000. Jill is the sole director. What is her personal liability
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Ali and Tom are both shareholders in ABC Electrical Ltd. Ali has 51% of the shares and Tom has 49%. Ali is offered $100,000 to sell his shares to DEF Electrical Ltd. Tom is not offered anything for his shares. Does Tom have any rights?
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A third-party businessperson must be most careful when dealing with
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Susan, Alice and Wanda are shareholders in Flip Flop and Fly Inc., a children's yoga store. Each own 33% of the shares. Susan and Alice have decided they no longer want to work with Wanda. They sell all of the corporate assets to Bendy Girl Ltd. Does Wanda have any rights?
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Under corporation law, a person elected by the shareholders of a corporation to manage its affairs is known as a
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Where a shareholder believes that a director has acted improperly as against the interests of the corporation, he or she will commence
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Directors have a personal liability for all of the following except
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Those persons legally responsible for the execution of management of a corporation are
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Braun was a director of Cable Shipping Ltd., a corporation which leased a large wharf from Valdez. Braun gave instructions to the person in charge of the wharf that the S.S. Cambridge would be using the wharf to unload its cargo. The S.S. Cambridge damaged the wharf on its arrival, and the wharf owner brought an action against Cable Shipping Ltd. for repairs. If Cable Shipping Ltd. was the ship owner, it would be liable for the damage.
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The greatest control over the acts of a corporation may be exercised by
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Where a director's acts are in violation of his duty of loyalty to the corporation, the most likely principle to be applied is the
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If a shareholder believes that he or she suffered loss as a result of a failure of the directors to do their duty,
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A corporation may exempt itself from audit only if
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ABC Oil Company Ltd. owns 40 oil wells, 4 have potential environmental liability resulting from contamination. DEF Oil Company Ltd. wants to acquire ABC. Should it purchase assets or shares?
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The priorities of corporate security are usually
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The Quebec Charter of the French Language (Articles 63 and 64) requires corporations to utilize the French version of their name within the province. Translations may be offered
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Braun was a director of Cable Shipping Ltd., a corporation which leased a large wharf from Valdez. Braun gave instructions to the person in charge of the wharf that the S.S. Cambridge would be using the wharf to unload its cargo. The S.S. Cambridge damaged the wharf on its arrival, and the wharf owner brought an action against Cable Shipping Ltd. for repairs. If the S.S. Cambridge was owned by another corporation in which Braun had an undisclosed financial interest, Braun would be liable to Cable Shipping Ltd. for granting unauthorized permission for the ship to use the wharf.
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A person may rely on the acts of the officers of a corporation without inquiry by virtue of
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Braun was a director of Cable Shipping Ltd., a corporation which leased a large wharf from Valdez. Braun gave instructions to the person in charge of the wharf that the S.S. Cambridge would be using the wharf to unload its cargo. The S.S. Cambridge damaged the wharf on its arrival, and the wharf owner brought an action against Cable Shipping Ltd. for repairs. Braun would be personally liable to Valdez for the damage, because he gave permission for the corporation's ship to use the wharf.
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