When is a shareholder permitted to sue as a representative of a corporation?
What will be an ideal response?
Before a shareholder can sue as a representative of a corporation, he must meet two requirements: (1) the shareholder must have owned shares at the time of the wrong; (2) the shareholder must urge the directors and, if appropriate, the other shareholders to direct that such a suit be brought by the corporation. A shareholder is permitted to bring suit only if the directors refuse or have a conflict of interest that is likely to keep them from suing. If the shareholder wins, the damages normally go to the corporation and not to the shareholder directly. However, the shareholder will be reimbursed for her expenses in bringing the suit.
You might also like to view...
When Dee has business in Denver, she often goes out for a fancy meal. When deciding where to go, the restaurants she usually chooses are the local Thai restaurant and the elegant French restaurant. Do these two restaurants represent her universal, retrieval, or evoked set of choices?
What will be an ideal response?
Procter & Gamble makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice, and Vidal Sassoon shampoos. Through its use of a separate and unique brand name for each of these products, Procter & Gamble is using a(n) ________ strategy.
A) umbrella brand B) family brand C) individual brand D) private-label brand E) cobranding
Using a penetration strategy, the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.
Answer the following statement true (T) or false (F)
Process costing rather than job order costing is more appropriate for service companies
Indicate whether the statement is true or false