Medgar Evers College Corporations Law Assignment and Solutions

This document provides solutions to a Corporations Law assignment consisting of ten multiple-choice questions based on the Sherman Antitrust Act and various aspects of corporate law, as assigned at Medgar Evers College. The answers cover topics such as defining monopolies under the Sherman Antitrust Act, shareholder rights in corporate governance, derivative lawsuits, corporate bylaws under the Revised Model Business Corporation Act (RMBCA), director responsibilities, common and preferred stock participation in dividend distribution, stock classes, shareholder liability, convertible preferred stock, and corporate powers. The solutions are supported by references to relevant business law texts, providing a comprehensive overview of the legal concepts tested in the assignment. Desklib is a valuable resource for students seeking similar solved assignments and study materials.

Corporations Assignment

Table of Contents
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................3
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................3
Answer 5....................................................................................................................................3
Answer 6....................................................................................................................................3
Answer 7....................................................................................................................................4
Answer 8....................................................................................................................................4
Answer 9....................................................................................................................................4
Answer 10..................................................................................................................................4
References..................................................................................................................................5
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Answer 1
(A) I, II and III
Monopoly under the Sherman Antitrust Act is considered to be the ability of an organization
to control prices within its geographical market or its relevant product's market or excludes
the competitor from carrying its business within that market. An organization having more
than 75% market share is also considered to be a monopoly (MacIntyre, 2018).
Answer 2
(C) Both I and II
The shareholders in a corporation have the right to vote in a general or annual meeting. They
have the right to vote on any fundamental changes in the corporate structure such as a
merger. The shareholders also have the right to reasonable inspection of the corporate
records.
Answer 3
(c) Both I and II
A stockholder can file a shareholder’s derivative lawsuit on behalf of the corporation.
Derivative suits are brought usually against the insiders of a corporation such as board
members, officers and directors. The stockholder has to bring suit should represent the
interest of the shareholders and not only his or her personal interest.
Answer 4
(A) I only
Initial bylaws of a corporation under the Revised Model Business Corporation Act may be
adopted by either the board of directors or incorporators (Kirton and Madunic, 2009).
Answer 5
(A) I only
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RMBCA need that a director should depend on reports, statements, opinions and information
presented or prepared by an appropriate corporate officer.
Answer 6
(A)
Lucan can participate with the common stock shareholders in any dividend distribution made
after preferred dividends are paid.
Answer 7
(D) Must have only one class of stock
The stock is being offered to the shareholders by C corporations to become the owner of the
organization.
Answer 8
(B) II only
The shareholders are personally liable for the personal funds that are being invested into the
corporation.
Answer 9
(B) II only
A share of convertible preferred stock is corporate equity security which can be converted to
the common shares.
Answer 10
(B) I and II only
Corporations have the power of acquiring their own shares and make charitable contributions
without the shareholder approval.
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References
Kirton, J. and Madunic, J. (2009). Global law. 6th ed. Aldershot: Ashgate.
MacIntyre, E. (2018). Business law. 9th ed. Harlow, England: Pearson.
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