Question

7. Local Corporation invests in intrastate businesses. In Local's state, as in most states, the minimum number of direc- tors that must be present before a board can transact business is a. all of the directors authorized in the articles b. a majority of the number authorized in the articles or bylaws c. any odd number. d. one. 8. Nationwide Company's chief financial officer resigns. After a personnel search, an investigation, and an interview, the board of directors hires Ed. Ed turns out to be dishonest. Nationwide's shareholders sue the board. The board's best defense is a. the business judgment rule. b. the directors' duty of care. c. the directors' duty of loyalty d. a shareholder's derivative suit. 9. Ron is a director of Standard Company. Ron has a right to a. compensation for his efforts on Standard's behalf. b. transfer shares of Standard stock c. participate in Standard board meetings. d. preemptive rights to buy Standard shares on any new issue.