Question

42. Which of the following is true with respect to a corporate officer?

1. he or she must also be a director.
2. he or she must also be a shareholder.
3. none of the choices are correct.

43. Which of the following is required of an enforceable written contract?

1. It can be any writing provided it includes all terms and conditions.
2. It must be signed by witnesses.
3. None of the alternatives are correct.

Answer 1

A)

The answer is (C).

It is not mandatory that a corporate officer must be a director or a shareholder but can be. A corporate officer generally oversees the daily operations of a corporation and are appointed by the board of directors of the company.

In some organizations, the director of the corporation oversees the day to day activities therefore he defines the role of a corporate officer.

Shareholders can be defined as a person who has invested a part of equity into an organization. A shareholder can be an active employee or a silent investor. In case the shareholder takes the responsibility to oversee the daily operations of an organization then h/she can be described as the corporate officer.

Hence, (a) and (b) are false options.

B)

The answer is (A).

A written signed agreement from both parties is enough to enforce a contract. Terms and Conditions must be clearly defined and to be followed in case of any false activities. For example. A needs to sell a car for $350 and B agrees to buy a car at the same price. They both need to sign a written agreement to validate the contract legally.

Why not B?

Some contracts need to be signed by the witness but it is not mandatory for every contract. Hence (b) is false.