A Shareholder Who Engages in a Conflict of Interest with a Corporation

question 39

Multiple Choice

A shareholder who engages in a conflict of interest with a corporation in which the shareholder holds shares must

• A)pay damages to the corporation.
• B)disgorge any profit the shareholder makes through the conflict of interest.
• C)sell the shareholders shares to the corporation.
• D)get the consent of the corporation in which the shareholders holds shares.
• E)none of the above

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Definitions:

Deflation

A decrease in the general price level of goods and services, often indicating an economic downturn.

CPI

The Consumer Price Index represents a metric that assesses the aggregate weighted cost of a variety of consumer products and amenities, encompassing areas like transportation, healthcare, and food.

Inflation

The climb in the general pricing landscape for goods and services, depleting the power of procurement.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the increase of price levels across the economy, but not an absolute decline in prices.