The Activities of a Large Multinational Corporation Violated Federal and Provincial

question 41

Multiple Choice

The activities of a large multinational corporation violated federal and provincial environmental laws.It polluted a clean water source and caused illness among the people and wildlife inhabiting the affected area.What would the corporation's lawyers most likely suggest as the main reason for attempting to force resolution of the legal dispute through ADR?

• A) a desire to avoid establishing a common law precedent for damages arising from environmental infractions
• B) a need to sustain the operation based on the amount of capital resources committed to it business activities
• C) the ability to keep details of the contamination and of the settlement private and confidential
• D) the fact that an arbitrator's decision will be binding and likely be favourable to the corporation

---

Definitions:

Sophisticated Investors

Investors deemed to have significant experience, knowledge, and financial resources to engage in more complex investment opportunities.

Short Interest

The total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.

Risk-adjusted Returns

A calculation of the profit made from an investment adjusted for the risk taken, allowing for a more accurate comparison across different assets.

Small Firms

Small firms refer to businesses with a relatively smaller size or scale of operations, often characterized by limited revenue, assets, or number of employees compared to larger corporations.