Fact Pattern 40-1ARuben is a shareholder of Speed Bikes Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by SBC, Ruben files a suit on the firm's behalf.Refer to Fact Pattern 40-1A. Ruben's suit is a shareholder's

A. indemnification suit.
B. derivative suit.
C. proxy suit.
D. preemptive suit.


Answer: B

Business

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