Question

(chapters 39,40,41,42)
question 27 (2.5 points)
marco is a director of rutger’s roadhouse restaurants, inc. he opposes a tender offer that is in the company’s best interest because it would cost his position as a director if the offer was accepted. marco is most likely liable for a breach of

a) none of the choices.

b) the duty of care.

c) the duty of loyalty.

d) the business judgment rule.

question 28 (2.5 points)
perfumeland, inc., is incorporated in the state of new jersey and is doing business in the state of new york. in new york, perfumeland is properly referred to as

a) a domestic corporation.

b) a foreign corporation.

c) a public corporation

Explanation:

Question 27

The duty of loyalty requires directors to act in the company's best interest, not their own. Marco opposes a beneficial tender offer to protect his position, breaching loyalty. Duty of care is about reasonable care, business judgment rule protects good-faith decisions, and "none" is wrong. So the correct answer is c.

A foreign corporation is one incorporated in another state (here, New Jersey) and doing business in a different state (New York). Domestic is in the state of operation, so New York would consider Perfumeland (incorporated in NJ) a foreign corporation.

Answer:

c) the duty of loyalty.

Question 28