OK Bar Business Organizations

Question 1

Under the Oklahoma General Corporation Act, what is the minimum number of directors a newly formed corporation must have?

Accepted Answer

One

Answer

Two

Answer

Three

Answer

Five

Question 2

A shareholder derivative suit allows a shareholder to:

Accepted Answer

Sue on behalf of the corporation for wrongs done to the corporation

Answer

Sue another shareholder for breach of fiduciary duty

Answer

Sue the corporation directly for personal damages suffered

Answer

Sue the board for wrongful termination of corporate officers

Question 3

The business judgment rule protects corporate directors from personal liability when they:

Accepted Answer

Act in good faith, with due care, and in the honest belief that the action serves the corporation's best interest

Answer

Act in their personal financial interest when approving transactions

Answer

Fail to conduct any due diligence before making decisions

Answer

Approve transactions without disclosing their conflicts of interest

Question 4

Piercing the corporate veil is a doctrine that:

Accepted Answer

Holds shareholders personally liable for corporate debts by disregarding the separate corporate form

Answer

Allows shareholders to inspect confidential corporate records

Answer

Requires directors to disclose potential conflicts of interest to shareholders

Answer

Describes the formal process for dissolving a corporation under state law

Question 5

Under the Oklahoma General Corporation Act, which of the following is NOT required to be included in a corporation's articles of incorporation?

Accepted Answer

The names of the initial board of directors

Answer

The name of the corporation

Answer

The total number of authorized shares

Answer

The name and address of the registered agent

Question 6

A shareholder's preemptive right grants the shareholder the ability to:

Accepted Answer

Purchase a pro-rata share of any new stock issuance before it is offered to the public

Answer

Vote to remove any director without cause at a special meeting

Answer

Demand immediate dissolution if the corporation becomes insolvent

Answer

Inspect the corporation's books and financial records at any time

Question 7

Under Oklahoma law, the primary purpose of the required annual meeting of shareholders is to:

Accepted Answer

Elect directors and transact other business properly before the meeting

Answer

Approve all contracts exceeding a threshold amount set by the board

Answer

Set compensation packages for corporate officers and key employees

Answer

Review and formally approve the corporation's annual operating budget