Traditionally,a Transaction Benefiting a Director's Self Interest Is __________ Unless

question 5

Multiple Choice

Traditionally,a transaction benefiting a director's self interest is __________ unless the director could show it was fair and reasonable to the corporation.

• A) void
• B) voidable
• C) illegal
• D) All of these are correct.

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Definitions:

Deadweight Losses

Economic inefficiencies that occur when the equilibrium in a market is not achieved or is distorted, typically resulting in lost welfare or inefficiency.

Ability-to-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, implying those with higher income should pay more taxes.

Taxes

Mandatory fiscal contributions or other forms of levies required from taxpayers by governmental bodies to support government expenditures and diverse public costs.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.