Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.shareholderdirectorsofficersproxyvoting trustpooling agreementshareholder proposaldirect suitderivative suitbusiness judgment rulefairness ruleinsider tradingcorporate opportunitydoctrine1. Form groups of four, and plan a mock shareholders meeting.2. Role-play an election of the board of directors.3. Vote on an issue.4. Plan for a future event of your choosing.5. Finally, write down a brief description of the shareholdersmeeting. With what did you have the most difficulty? What didyou enjoy most?Visit the UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 29:Operating a Corporation—Self-Check Quizzes toprepare for the chapterexam.Answer the following questions. Refer to the chapter for additional reinforcement.6. Who elects the board of directors?7. Are all shareholders individuals? Explain your answer.8. Describe the two types of suits a shareholder might bring against a corporation.9. Identify the people with legal responsibility for the acts (civil and criminal) of thebusiness organization. What are the duties of directors and officers?10. What is the insider trading rule? Give two examples.11. Under what circumstances might a corporation decide not to issue a dividend?12. What is a voting trust?13. Why are the elections of corporate officers often staggered by corporate bylaws?14. Describe the exception to the corporate opportunity doctrine.Chapter 29: Operating a Corporation 641