Directors Can Make Opportunistic Choices to Advance Their Personal Interest

question 8

Multiple Choice

Directors can make opportunistic choices to advance their personal interest when:

• A)they plan to sell off the corporation stocks at inflated prices.
• B)they hold majority of the stocks in the corporation.
• C)they are aware that the cost of forming a new board of directors is high.
• D)their personal returns from the well being of the corporation is high.

---

Definitions:

President Eisenhower

Dwight D. Eisenhower, the 34th President of the United States, serving from 1953 to 1961, known for his leadership during World War II and the interstate highway system development.

Brown Decision

Refers to the landmark U.S. Supreme Court decision in Brown v. Board of Education of Topeka (1954), which declared state laws establishing separate public schools for black and white students to be unconstitutional.

Eighth-Grade Education

A level of education typically received by students around the age of 13 to 14 years old in the United States, considered basic education.

Fixed Incomes

A type of income that does not vary over time, typically associated with retirees or investments that pay a regular, unchanging amount.