Osiris Corporation Located a Piece of Vacant Land, Which It

question 78

Multiple Choice

Osiris Corporation located a piece of vacant land, which it thought was a good investment for speculative purpose. Tommy Tolles, a director, approached the owner before Osiris Corporation's real estate agent did and bought the property. Tolles later resold the property for a profit. The corporation wants to take action against Tolles. What can it do?

• A)Nothing as that is the competitive, free enterprise system
• B)Remove Tolles from the board of directors
• C)Sue Tolles for the amount of any profit
• D)Prohibit Tolles from paying a dividend
• E)Both B and C

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Definitions:

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods.

Consumer Equilibrium

The point at which an individual's income is perfectly balanced with their consumption preferences, maximizing utility.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Income

The money received by an individual or business in exchange for labor, services, or investment, constituting a basis for consumption and savings.