In a closely held corporation, which of the following lawsuits is likely to be b
ID: 383347 • Letter: I
Question
In a closely held corporation, which of the following lawsuits is likely to be brought by a minority shareholder on behalf of a corporation if the majority is acting illegally or oppresses the rights of the minority shareholders? O A. a derivative sut O B. a preemption suit O C. a petit suit E. a termination suit QUESTION 19 Which of the folowing statements is most likely to be true when the Federal Trade Conmission (FTC) is very laissez-fisire? O A. The FTC docs not regulate most advertising O B. The FTC tends not to regulate traditional frauds C. The FTC commissioners tend to be nore consumer-orient D. The FTC will increase the mauber of deceptive cases filed. s the role of markets in re E. TheExplanation / Answer
Ans:
1. It is a Derivative suit.
A derivative suit is suit by shareholders on behalf of the corporation against the majority shareholders against the wrong action affecting the interest of minority shareholders.
2. Leissez-Faire is defined as the policy of leaving things to take their own course without interfering. Hence the correct option is (A) which states the FTC does not regulate most advertising.