Which One of the Following Is an Example of Breach

question 97

Multiple Choice

Which one of the following is an example of breach of fiduciary duty?

• A) The directors of the corporation refuse to give a pay raise to the employees although they had not received a pay raise for five years.
• B) A director profited $120,000 from a contract between the corporation and a firm in which he had an interest after he made full disclosure of his interest to the board of directors and abstained from the vote on the contract.
• C) An officer of the corporation learned of a business opportunity intended for the corporation and intercepted it for his own benefit.
• D) The directors refused to declare a dividend, contrary to the request by its preferred shareholders.
• E) A shareholder owning 2% of the outstanding shares started a business in direct competition with the corporation in which he held shares.

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Definitions:

Transgenic Plants

Plants that have been genetically modified to contain and express genes from other species.

Cell Wall

A rigid layer that lies outside the cell membrane of plants, fungi, and bacteria, providing structural support and protection.

Human Genome Project

an international scientific research project with the goal of determining the sequence of nucleotide base pairs that make up human DNA, and of identifying and mapping all of the genes of the human genome.

Repeated Sequences

DNA segments that are present multiple times within a genome, including both tandem repeats and interspersed repeats.