When a corporation acts ultra vires, it is:Question 3Select one:a.acting within its legal authority.b.committing a crime.c.acting outside its legal authority.d.acknowledging its social responsibility.
Question
When a corporation acts ultra vires, it is:Question 3Select one:a.acting within its legal authority.b.committing a crime.c.acting outside its legal authority.d.acknowledging its social responsibility.
Solution
The term "ultra vires" is a Latin phrase meaning "beyond the powers". When a corporation acts ultra vires, it means it is acting beyond the powers granted to it by its corporate charter, or state laws governing corporate actions. Therefore, the correct answer is:
c. acting outside its legal authority.
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