Which of the Following Would Be Likely to Result in Liability

question 47

Multiple Choice

Which of the following would be likely to result in liability to a director of a textile company?

• A) The director sells stock in the textile company before a merger is announced.
• B) The director uses the corporation's offices to buy and sell his own investment securities.
• C) The director owns stock in an automobile company.
• D) The director agrees to hire as president a man he has not personally investigated.
• E) Both t he director sells stock in the textile company before a merger is announced and t he director uses the corporation's offices to buy and sell his own investment securities.

---

Definitions:

Price Level

The broad-based average price across the spectrum of goods and services in the economy.

Real Income

Income of individuals or nations adjusted for inflation, reflecting the actual purchasing power.

Velocity of Money

The rate at which money is exchanged from one transaction to another and used to purchase goods and services, reflecting the economy's activity level.

Nominal GDP

A measure of a country's economic output based on current prices, without adjusting for inflation.