Bill Is a Member of the Board of Directors of Telmar

question 25

Multiple Choice

Bill is a member of the board of directors of Telmar Corp.He would like to have the corporation lend him some money so that he can begin another business venture.Which of the following is correct regarding loans of a corporation to one of its directors?

• A)The Model Act does not permit a corporation to lend money to its directors without authorization in each instance by its shareholders.
• B)The Sarbanes-Oxley Act prohibits any publicly held corporation from making personal loans to its directors, with limited exceptions.
• C)Both the Model Act and the Revised Act prohibit loans to directors in all cases.
• D)Both (a) and (b) are correct.

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Definitions:

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.

Reinforcement Value

Refers to the subjective attractiveness or desirability of a consequence that can increase the likelihood of a particular behavior being repeated.

Lower Calorie

Refers to foods or diets that have reduced calories compared to their traditional counterparts, often used for weight management.

Junk Food

Food that is high in calories but low in nutritional content, often containing high levels of sugar, salt, and fat.