Dan Is a Director of a Corporation, and Without Disclosing

question 51

Essay

Dan is a director of a corporation, and without disclosing his conflict of interest, entered into a contract to supply the corporation with widgets. The contract was made in the name of his mother so that the corporation would not know that Dan was involved. Pat is a minority shareholder in the corporation, has found out about the conflict, and intends to bring a derivative action against Dan. Explain what a derivative action is. Why is a derivative action appropriate in the circumstances? What must Pat show in order to bring a derivative action? What remedy might a court award?

Recognize the types and functions of bond issues (registered, bearer, etc.).

Grasp the significance of bond ratings and their implications for investment quality.

Understand the various risk premiums associated with bond investing.

Comprehend the protective mechanisms for bondholders, including sinking funds and protective covenants.

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Definitions:

Common Physical Stimuli

External factors that elicit sensory or physiological responses from individuals, often used in experiments to examine reactions and behaviors.

Natural Settings

Environments or situations that have not been artificially manipulated or controlled, often used in research to observe behavior in real-world conditions.

Relevant Behaviors

Actions or responses that are significant or meaningful in a particular context, especially in the study of psychological or social phenomena.

Developmental Disabilities

A group of conditions due to an impairment in physical, learning, language, or behavior areas, beginning during the developmental period.