Amy Is on the Board of Directors of Computers Plus

question 16

Multiple Choice

Amy is on the board of directors of Computers Plus.Computers Plus is looking for a warehouse to purchase.Amy owns a warehouse.In order for Amy to sell her warehouse to Computers Plus,

• A)the transaction must be fair to both Amy and Computers Plus.
• B)the disinterested members of the board of directors must approve the transaction.
• C)she must resign her position on the board of directors of Computers Plus before any negotiations for the warehouse begin.
• D)a court must review the opportunity to determine its favorability.

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Definitions:

Expiration Date

The specific date upon which an options or futures contract is no longer valid and the right to exercise it ceases.

Call Contract

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specified period.

Premium

The amount by which the price of a bond or stock exceeds its principal or par value, or the payment above the risk-free rate made for an insurance policy.

Expiration Date

The date on which an option, futures contract, or other derivative expires and becomes void.