A Threat That Is Due to a Long or Close

question 63

Multiple Choice

A threat that is due to a long or close relationship is a(n) _______.

• A)familiarity threat
• B)management participation threat
• C)self-interest threat
• D)self-review threat

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Definitions:

Derivative Action

A lawsuit brought by a corporation shareholder against the directors, management, or other shareholders of the corporation for a failure in duty that harmed the corporation.

Oppression Remedy

A legal remedy designed to protect minority shareholders in a company from unfair treatment or abusive actions by majority shareholders or the company's directors.

Shareholders' Agreement

A contract among the shareholders of a company that specifies their rights, obligations, and the company's operational procedures.

Special Act Corporation

A corporation that is created by a specific act of a legislature, tailored for a particular purpose or corporation.