Author Question: Alex is a director of ABC, Inc Alex wants to personally make a major purchase from Bravo Co If it ... (Read 152 times)

swpotter12

  • Hero Member
  • *****
  • Posts: 527
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.



Chou

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

For a complete list of videos, visit our video library