The business judgment rule effectively insulates directors from which type of claim?

a. Breach of the duty of care.

b. Breach of the duty of loyalty.

c. Breach of the duty of good faith.

d.Tort claims.

Which type of merger involves only two corporations?

a. Direct/forward merger.

b. Consolidation.

c. Forward triangular merger.

d.Reverse triangular merger.

Dany owns 34% of the outstanding shares of Steel Wheel Inc.Jon owns the remaining 66% of the shares.Steel Wheel Inc. has a 5-director board.Will she be able to control one or more board seats?

a. Yes.

b. Only if the Steel Wheel Inc. corporate documents provide for cumulative voting.

c. No.

To which group does the law give primary control over the corporation?

a. Directors.

b. Officers.

c. Shareholders.

The default rule for board votes is...

a. One shareholder, one vote.

b. One share, one vote.

c.One board seat, one vote.

Which of the following is not a way for a director to escape liability for an interested transaction?

a. A vote of the disinterested officers.

b. A vote of the disinterested shareholders.

c. Showing the transaction is fair under the entire fairness standard.

d.A vote of the disinterested directors.

Which exemption under the '33 Act is available for offerings of up to $5 million?

a. Regulation A.

b. Rule 505.

c. Rule 504.

d.Rule 506.