Roy, a Director of Service & Sales Corporation, Does Not

question 54

Multiple Choice

Roy, a director of Service & Sales Corporation, does not attend a board meeting for three years. During that time, Terry, the firm's president, makes improper loans that cost the company $10 million. Roy is most likely liable for breach of​

• A) ​the business judgment rule.
• B) ​the duty of care.
• C) ​the duty of loyalty.
• D) ​none of the choices.

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Definitions:

Manifest

A detailed list or document showing the cargo, passengers, or equipment being loaded on a ship, airplane, or other vehicle.

Equilibrium Price

The equilibrium price where the supply of goods matches the demand for goods in the market.

Binding Price Ceiling

A legally established maximum price for a good or service that is lower than the equilibrium price, leading to shortages.

Price Floor

A government or regulatory-imposed minimum price below which a good or service cannot legally be sold, intended to protect producers.