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:

Labor Unions

Organizations that represent workers in negotiations with employers regarding wages, working conditions, and other employment rights.

Collective Bargaining

The process in which workers, through their unions, negotiate with their employers on terms of employment, including wages, hours of work, working conditions, and benefits.

Negotiations

The process by which two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.

Job Security

The likelihood or assurance a person has that they will be able to continue their employment without risk of becoming unemployed.