David Is a Director on a Board of a Corporation

question 13

Multiple Choice

David is a director on a board of a corporation that is covered by the federal securities laws.He buys 1,000 shares of stock in the corporation based upon information he has received as a director.The purchase is:

• A) valid provided no fraudulent statements were made to the person from whom he purchased the shares.
• B) invalid.
• C) voidable regardless of whether a public announcement was made.
• D) valid provided the purchase occurred after a public announcement of the information.

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Definitions:

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value-adding activities.

Eliminating Waste

The process of removing non-value-adding activities in a business to improve efficiency.

Inventory Levels

Inventory levels refer to the quantity of goods and materials on hand at any given time within a business, which is crucial for meeting customer demand without overstocking.

Lean Manufacturers

Companies that employ strategies to reduce waste and inefficiencies in their production process, maximizing customer value.