Which of the Following Would Be Likely to Result in Liability

question 82

Multiple Choice

Which of the following would be likely to result in liability to a director of a textile company? The director:

• A) sells stock in the textile company before a merger is announced.
• B) buys stock in the textile company using the computer in the office of the company.
• C) owns stock in an automobile company.
• D) agrees to hire as president a man he has not personally investigated.

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Definitions:

Inelastic

Describes a condition where the demand or supply for a product or service is relatively unresponsive to changes in price.

Relatively Price Inelastic

A situation where the demand for a product changes by a smaller percentage than changes in price, indicating that consumers are less responsive to price changes.

Price Elasticity

A metric for evaluating how variations in the price of a commodity impact its demand level.

Unity

The state of being united or joined as a whole, often used in various contexts to denote harmony and agreement among members of a group or between entities.