Alex Is on the Board of Directors of Computers Plus

question 7

Multiple Choice

Alex is on the board of directors of Computers Plus.Computers Plus is looking for a warehouse to purchase.Alex owns a warehouse.In order for Alex to sell his warehouse to Computers Plus:

• A) the transaction must be fair to both Alex and Computers Plus.
• B) the disinterested members of the board of directors may approve the transaction.
• C) he must resign his position on the board of directors of Computers Plus before any negotiations for the warehouse begin.
• D) a court must review the opportunity to determine its favorability.

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Definitions:

Optimal Amount

The most efficient, beneficial, or ideal quantity of a good, service, or resource allocation under given circumstances.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.

Interest-Rate Cost-Of-Funds

The cost incurred by financial institutions to raise funds that they can then lend to customers, influenced by prevailing interest rates.

Market Interest Rates

The prevailing rate at which borrowers and lenders agree to engage in transactions of debt securities in the financial markets.