Which One of the Following Is an Example of Breach

question 104

Multiple Choice

Which one of the following is an example of breach of fiduciary duty?

• A) The directors of the corporation refuse to give a pay raise to the employees although they had not received a pay raise for five years.
• B) A director profited $120 000 from a contract between the corporation and a firm in which he had an interest after he made full disclosure of his interest to the board of directors and abstained from the vote on the contract.
• C) An officer of the corporation learned of a business opportunity intended for the corporation and intercepted it for his own benefit.
• D) The directors refused to declare a dividend, contrary to the request by its preferred shareholders.
• E) A shareholder owning 2 percent of the outstanding shares started a business in direct competition with the corporation in which he held shares.

---

Definitions:

Postal Carrier

An individual employed to deliver mail and packages to residences and businesses, representing postal services.

Letterhead Paper

High-quality stationery paper imprinted with a company's or individual's name and address used for official correspondence.

High-Quality Paper

High-quality paper refers to paper products that are superior in terms of texture, durability, and printing capabilities, often used for professional documents and publications.

Monitor E-Mail Messages

The process of checking and overseeing electronic mail communications for compliance, security, or productivity reasons.