If a Fraud Is Committed by a Member of the Board

question 40

True/False

If a fraud is committed by a member of the board of directors of a corporation, a written notice to the corporation from individual shareholders is not required to bring a derivative lawsuit.

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Definitions:

Irrational Thinking

Cognitive processes that are not based on logic or rationality, often leading to erroneous conclusions or actions.

Aversive Conditioning

A behavioral training method that uses negative stimuli to reduce or eliminate unwanted behaviors.

Exposure Therapy

A psychological treatment method that reduces fear and anxiety responses by gradually and repeatedly exposing individuals to feared objects or situations.

Behavior Modification

The use of operant conditioning techniques to change or replace undesirable behaviors with more desirable ones.