Alex is a director of ABC, Inc Alex wants to personally make a major purchase from Bravo Co If it knew of the opportunity, ABC might be also interested in making that same purchase. Alex must
A) advise the boards of both corporations of his conflict of interest.
B) first offer the opportunity to make the purchase to the disinterested directors of ABC or its shareholders.
C) resign from the board of directors.
D) abandon the idea of making the purchase himself.
Question 2
Which of the following describes the duty of loyalty?
A) It requires managers to make decisions they reasonably believe to be in the best interest of the corporation.
B) It prohibits managers from making a decision that benefits them at the expense of the corporation.
C) It requires consideration of the interests of the surrounding community.
D) It requires using care that an ordinarily prudent person would take in a similar situation.
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