Answer the following statement(s) true (T) or false (F)
1. The statutory authority granted to the board of directors to manage the business and affairs of the corporation is absolute and may not be limited in any way by the articles of incorporation or the corporate shareholders.
2. The board of directors of a public corporation has oversight responsibility for the corporation’s business performance and plans.
3. The issuance of stock of a corporation sometimes requires shareholder approval.
4. Corporate directors may be found personally liable for their poor business decisions that adversely affect the corporation, even if those decisions are made with diligence and in good
faith.
5. Under the business judgment rule, directors may not be found personally liable to the corporation or third parties for their fraudulent acts if those acts were made on behalf of the corporation.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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What will be an ideal response?
A movie theater finds that when it reduces its prices, its total revenues drop significantly. Its price elasticity of demand is _____
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