18 Questions
What is one of the purposes of company law?
Ensuring all corporate transactions are beneficial to stakeholders
In Dodge v. Ford case, who were the plaintiffs?
John and Horace Dodge
What was the relief sought by the plaintiffs in the Dodge v. Ford case?
Enjoin the use of cash for a specific purpose
Based on the text, what is the shareholders' wealth maximization rule primarily aiming at?
Maximizing shareholders’ financial return
Why did Dodge v. Ford case revolve around the declaration of dividends?
To ensure fair distribution of profits
What is one of the ways company law contributes to reducing conflicts among constituencies?
Facilitating coordination between participants
What legal mechanisms can Alice, Bart, and Chris use to form a profit generating activity without creating a company?
Alice can license the intellectual property to Bart
Who owns a manufacturing facility in the provided example?
Bart
What role does Alice play in ABC Corp?
Chairman & CEO
What is the primary purpose of company law?
To provide entrepreneurs with a legal structure for business pursuit
In the context of the text, what does 'the box' symbolize?
The legal rights and liabilities in company law
'C loans cash to A who enters into manufacturing contract with B' is an alternative mechanism mentioned in the text. What does this mechanism suggest?
Financial support for manufacturing without forming a company
What did the trial court do regarding the dividend?
Ordered a $19 million dividend
According to Dodges' argument, why did they consider Ford's policy reckless?
Ford was expanding the business despite uncertain conditions
What is Henry Ford's ambition according to his response?
To invest profits back into the business
In Ford's response, who does he mention as benefiting from the industrial system?
Employees
According to Ford, where does he put the majority of the profits?
Back into the business
In questioning sustainability, Ford asks whose interests the corporation serves. What is not among the options he listed?
Shareholders
Explore the legal mechanisms available for individuals like Alice, Bart, and Chris to form a profit generating activity without creating a company. Delve into the nuances of company law with this session 1 quiz.
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