Question

Ariana is an officer of New Stage, a theater production company. Without telling any other officers or the board of directors, she decides that New Stage should try to sell gardening tools over the Internet. She makes contracts with suppliers and a Web-based remote-order-fulfillment company. The only action that may not be taken is:___________
a. the shareholders can file a lawsuit on behalf of the corporation.
b. the state attorney general may seek an injunction against the transactions or seek a dissolution order from a court.
c. she can file a lawsuit against the corporation for damages.
d. the corporation can file a lawsuit against her for damages.

Answer 1

Answer:

c. she can file a lawsuit against the corporation for damages.

Explanation:

Based on the scenario being described within the question it can be said that the only action that may not be taken would be for Ariana to file a lawsuit against the corporation for damages. This mainly because the corporation is not responsible for any damages that may be incurred since Ariana did not discuss her decisions with the board of directors and was therefore acting alone, making her alone liable for the damages.