Randy Is a Director of STEM Inc

question 129

Multiple Choice

Randy is a director of STEM Inc. As a director, with respect to the corporation, Randy is expected to use

• A)prudent business judgment.
• B)perfect business judgment.
• C)prolonged business judgment.
• D)pluperfect business judgment.

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Definitions:

1% Commission

A fee or charge for services, typically in sales or financial transactions, that is equal to 1% of the transaction's total value.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Annual Dividend

The total payout a shareholder receives from a company's earnings over one year, distributed per share.

5-day SMA

The average of a security's closing prices over the last 5 days, often used to identify trends.