Shareholder derivative action be appropriate

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Reference no: EM131133425

1. In which of the following contexts is a professional most likely to be liable to a third party for negligence? A. An attorney who advises companies on corporation and business laws B. An accountant who prepares and audits financial statements of companies C. A consultant who gives advice to companies for improving performance D. A securities broker who provides investment advice to retail investors

2. For which of the following would a shareholder derivative action be appropriate? A. The shareholder alleges that the board of directors has not properly managed the corporation. B. The shareholder has been refused a request that his/her accountant be permitted to look at the corporate accounting records. C. The shareholder alleges that the corporation has been paying dividends to a previous shareholder from whom the shareholder purchased his/her shares. D. The shareholder alleges that the corporation has violated the shareholder's preemptive right. E. None of the above is a valid reason.

Reference no: EM131133425

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