​Elise Is a Director for Fro-Yo Inc

question 27

Multiple Choice

​Elise is a director for Fro-Yo Inc. Elise is also a director for Gelato Ice, Inc. When Fro-Yo's board considers a contract with Gelato, Elise must

• A) ​resign from Fro-Yo or Gelato.
• B) ​resign from Fro-Yo and Gelato.
• C) ​make a full disclosure of any conflict of interest.
• D) ​use her business judgment to rule on the deal.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.