Jameson Works for Fishy-Mart Corporation, a Chain of Superstores That

question 18

Multiple Choice

Jameson works for Fishy-Mart Corporation, a chain of superstores that sell large quantities of seafood.Jameson's job is to locate future sites for Fishy-Mart stores.Jameson finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart store.Jameson tells his friend to purchase the property from its current owner, which he does.Jameson has a secret agreement with his friend to split the profits when he sells the property to Fishy-Mart.Jameson, without disclosing his interest in the property, recommends the site to Fishy-Mart, which then purchases the property from Jameson's friend.The friend splits the profits with Jameson.What breach of the duty of loyalty has Jameson committed here?

• A)usurping a corporate opportunity
• B)self-dealing
• C)competing with the corporation
• D)proxy

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the number of outstanding shares.

Earnings Per Share

Earnings Per Share (EPS) is a measure of a company's profitability, calculated as net income divided by the number of outstanding shares.

Legal Capital

The portion of a company's capital, represented by the par value of its issued shares, that cannot legally be distributed to shareholders as dividends.

Contributed Capital

Contributed Capital, also known as paid-in capital, refers to the amount of money raised by a company through the sale of its equity shares.