Alex Is a Director of ABC,Inc

question 24

Multiple Choice

Alex is a director of ABC,Inc.Alex wants to personally make a major purchase from Bravo Co.If it knew of the opportunity,ABC might be also interested in making that same purchase.Alex must

• A)advise the boards of both corporations of his conflict of interest.
• B)first offer the opportunity to make the purchase to the disinterested directors of ABC or its shareholders.
• C)resign from the board of directors.
• D)abandon the idea of making the purchase himself.

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Definitions:

Corporate Affairs

Encompasses the management of a company's relationships and interactions with its stakeholders, including government, the public, and the media.

External Environment

The external environment includes all outside factors and influences that impact the operation of a business, such as economic, social, political, and technological factors.

Data

Information, statistics, or facts collected for analysis, reference, or calculation, often used to make decisions or inform policy.

Decision Makers

Individuals or groups responsible for making choices that affect an organization's strategies and operations.