A Shareholder That Engages in a Conflict on Interest with a Corporation

question 36

Multiple Choice

A shareholder that engages in a conflict on interest with a corporation is which the shareholder holds shares must:

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

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Definitions:

Motivation

The force or process that initiates, guides, and maintains goal-oriented behaviors.

Equity Theory

A theory of motivation that explains how perceptions of fairness in the distribution of rewards and resources affect employee satisfaction and output.

Social Comparison

The process of evaluating oneself in relation to others, often to understand one's standing or improve self-image.

Perceived Inequity

A feeling or belief that the balance of contributions and rewards in a relationship or situation is unfair.