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:

Randomization

In an experiment involves assigning each individual by chance processes.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used for comparison against the group that does.

Random Sampling

A technique for selecting a sample from a population in a way that every member has an equal chance of being chosen.

Educated Guess

An assumption or prediction made based on known facts and logical reasoning, despite the absence of complete information.