While at Home,Kyle Kinston,the President and CEO of Remstat,Inc

question 66

Multiple Choice

While at home,Kyle Kinston,the president and CEO of Remstat,Inc.is called by the CEO of Viokam Corporation,who asks Kinston if Remstat would be interested in buying about 25 percent of the outstanding shares of Viokam.Remstat is a billion-dollar conglomerate that has contemplated acquiring Viokam for some time,but Kinston tells Viokam's CEO that Remstat is not interested.Kinston tells the CEO,however,that KKIM,Inc.is willing to buy the shares.Kinston is the 100 percent shareholder of KKIM.Viokam sells the shares to KKIM for $35 million.A year later,KKIM sells the shares for $55 million to a mutual fund company.When Remstat's directors discover KKIM's purchase and sale of the Viokam shares,they sue Kinston on behalf of the corporation.Which of the following is correct?

• A)Kinston has exceeded her authority to act for the corporation.
• B)Kinston has self-dealt with the corporation.
• C)Kinston has done nothing wrong.
• D)Kinston has usurped a corporate opportunity.

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Definitions:

X Chromosomes

One of the two types of sex chromosomes, where two X chromosomes typically characterize females and one X and one Y chromosome characterize males.

Monozygotic Twins

Twins that result from one fertilized egg splitting and developing into two embryos, sharing identical genetics.

Identical Twins

Twins that originated from the same fertilized egg, sharing all of their genetic material, and typically having very similar appearances.

Dizygotic Twins

Dizygotic twins, also known as fraternal twins, are produced from the fertilization of two separate eggs during the same pregnancy, sharing about 50% of their DNA.