Executives of a Fortune 500 firm blocked an acquisition attempt by a larger company. When the stockholders learned they could have made large profits had the acquisition not been blocked, they filed a lawsuit against the executives of the firm.
What type of liability insurance protects the executives of the organization against such suits?
A) dram shop liability insurance
B) directors and officers liability insurance
C) employers liability insurance
D) employment related practices liability insurance
Question 2
A firm paid dividends of 10,000, paid interest of 20,000, reduced debt principal outstanding (paid
off debt) in the amount of 100,000, and sold new stock for 150,000. What was the firm's cash flow
from financing activities?
A) +280,000 (280,000 flowed into the firm)
B) -280,000 (280,000 flowed out of the firm)
C) -20,000 (20,000 flowed out of the firm)
D) +20,000 (20,000 flowed into the firm)
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