What Best Describes the Circumstances in Which a Director May

question 34

Multiple Choice

What best describes the circumstances in which a director may transact with the corporation?

• A)Procedural safeguards to avoid conflicts of interest and to provide transparency are observed in connection with the approval of the transaction and it is fair and reasonable to the corporation.
• B)The corporation receives a benefit from the transaction.
• C)A judge has given approval to the transaction.
• D)The director abstains from voting when the directors vote on the approval of the transaction.
• E)The director provides a notice to the board of benefits the director will receive from the transaction.

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Definitions:

Other Parties

Refers to third parties or external entities involved in transactions or agreements outside of the primary parties concerned.

Business Gives

Likely refers to corporate philanthropy or donations made by businesses to charitable organizations or causes.

Vendor Lists

Vendor lists are compilations of suppliers and service providers that a company uses for purchasing goods or services, often maintained to streamline procurement processes.

QBO

Abbreviation for QuickBooks Online, a cloud-based accounting software designed for small to medium-sized businesses.