Fact Pattern 31-1Ray Is a Shareholder of Small Biz Company

question 2

Multiple Choice

Fact Pattern 31-1Ray is a shareholder of Small Biz Company (SBC) . When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 31-1.Ray's suit is a shareholder's 

• A) ​duty-of-care suit. 
• B) ​business-judgment rule suit. 
• C) ​duty-of-loyalty suit. 
• D) ​derivative suit.

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Definitions:

Acute Stress Disorder

Acute Stress Disorder is a mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within a month after exposure to a traumatic event.

Anxiety

A feeling of worry, nervousness, or unease, often about an impending event or something with an uncertain outcome.

Helplessness

A state of being unable to take action or make effective decisions in the face of adverse circumstances, often leading to diminished motivation.

Post-Traumatic Stress Disorder

A mental health condition that's triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.