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Exam Code: AD0-E402

Exam Name: Adobe Target Architect

Certification Provider: Adobe

Related Certification: Adobe Target Architect

AD0-E402 Adobe Target Architect

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For what purpose will a stockholder of a publicly held corporation be permitted to file a stockholders'
derivative suit in the name of the corporation?
A. To compel dissolution of the corporation.
B. To enforce a right to inspect corporate records.
C. To compel payment of a properly declared dividend.
D. To recover damages from corporate management for an ultra vires management act.
Answer: D
Choice "d" is correct. A derivative action is an action by a stockholder in the name of the corporation to
recover damages or to seek some other remedy on behalf of the corporation when the corporation does
not enforce its own rights. Such actions are often brought when the directors or officers have breached
their duty to the corporation and have refused to sue themselves. An ultra vires act is an act outside of a
director's or an officer's scope of authority and thus is a breach of duty to the corporation. Choices "a", "b",
and "c" are incorrect, because these would all be causes of action against the corporate directors or
officers on behalf of the stockholder to recover damages or seek some other remedy against the
corporate directors or officers on behalf of the stockholder, not on behalf of the corporation.

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