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Which principle underscores the expectation that partners act with honesty and integrity towards one another in a fiduciary relationship?

In a closely held corporation, a minority shareholder, Tom, feels oppressed by the controlling shareholders who make decisions that primarily benefit themselves. If Tom were to take legal action based on shareholder oppression, what must he demonstrate?

On January 1, Larry, Moe, and Bearle sign a written “partnership agreement” according to which they shall form, own, and operate a book store. The agreement provides that each of the three shall receive one-third of the profits. The agreement also contains the following provisions:”This partnership shall last ten years. However, any partner can be expelled at any time if the other partners unanimously agree that he or she should be expelled.”In the following months, Larry complains regularly about the state of the firm’s business. Moe and Bearle are more optimistic, and they grow tired of Larry’s constant complaints. Therefore, on December 31, when Larry, Moe, and Bearle meet, Moe and Bearle vote to expel Larry. Which, if any, of the following statements is correct?

What is the primary purpose of risk governance?

What significant change has occurred over time regarding the requirements for a corporation’s purpose and powers?

Which of the following is a major way to mitigate corporate risk?

Bob and Andrew form a corporation called Shoes and Socks, Inc. (“SSI”).  SSI sells shoes and socks in its store on Main Street.  Bob and Andrew are both shareholders in SSI, each owning 50% of the stock.  Andrew is the president and works in the SSI store.  Bob does not work for SSI; he is only a shareholder.  One day, Fred comes into the SSI store looking for shoes.  Andrew is working that day and suggests that Fred try on a pair of the newest shoes from Fad Footwear.  When Andrew goes to get the shoes, he sees the warning on the Fad Footwear box that says:  “THE SOLES OF THESE SHOES ARE COATED WITH A PROTECTIVE COVER THAT IS VERY SLIPPERY.  DO NOT WEAR UNTIL YOU HAVE REMOVED THE PROTECTIVE COVER!!!!” However, Andrew gives the shoes to Fred without removing the protective cover because Andrew does not want to remove the protective cover until the shoes are actually sold.  He tells Fred to put on the shoes and walk around the store and see how they feel.  Andrew does not warn Fred about the protective cover or that the shoes might be slippery. Fred puts on the shoes, takes three steps, slips (because the protective cover is indeed very slippery) and breaks his ankle.  Fred wants to sue.  Assuming that Andrew was indeed negligent, against which parties would Fred have a claim?

In August 2019, the Business Roundtable made a significant shift in its statement of corporate purpose. What was the primary change reflected in this updated statement?

Instructions:Students have a maximum of three (3) hours to complete the test.There are 50 short answer questions and 1 short essay questions. The short answer section is worth 80 percent of the exam (1.6 points each) and the essay is worth 20 percent.When you have completed your exam, please turn in the exam jacket and inside of it these exam questions, the scantron and scrap paper. Points from your exam may be deducted if you do not turn in all of these materials.If you have any questions, please raise your hand. Please do not get up to ask the question.This exam covers all pages assigned in your textbook and the corresponding classes.

Peter is the sole director of Gold Corp., a publicly traded Delaware corporation. Gold Corp. acquires 60% of the shares of Silver Corp., another publicly traded Delaware corporation in a cash-for-shares deal. This turns out to be a poor acquisition, as the value of the shares of Silver Corp. declines rapidly within the next few months.Peter now considers two possible choices. First, Gold Corp. can sell the Silver Corp. shares, thereby realizing a loss which the corporation can deduct from its income and thereby lower its corporate income tax liability. For financial accounting purposes, this solution would make the corporation’s net income for the year substantially lower because the net income would reflect the loss. Alternatively, Peter considers distributing the shares of Silver Corp. as a dividend to Gold Corp.’s own shareholders. This solution has the drawback that neither Gold Corp. nor Gold Corp.’s shareholders realize a loss for tax purposes. On the other hand, the advantage of this solution, as Peter sees it, would be that for financial accounting purposes, the loss resulting loss would be charged against surplus. Fearing that the stock market may react much more negatively to lower net income than to a mere reduction in surplus, Peter opts for the second solution and lets Gold Corp. distribute the shares of Silver Corp. as a dividend. Which of the following statements is correct?