Which of the Following Would Be Likely to Result in Liability

question 8

Multiple Choice

Which of the following would be likely to result in liability to a director of a textile company?

• A)The director sells stock in the textile company before a merger is announced.
• B)The director uses the corporation's offices to buy and sell his own investment securities.
• C)The director owns stock in an automobile company.
• D)The director agrees to hire as president a man he has not personally investigated.
• E)Both (a) and (b).

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Definitions:

Edelman Trust Barometer

An annual survey conducted by Edelman, measuring public trust in institutions such as businesses, government, NGOs, and media across the globe.

Disenfranchisement

The removal of the right to vote or other rights of citizenship, either through legal or illegal means, often affecting marginalized groups.

Markets

Places or systems where parties engage in exchange of goods, services, or information, often determined by supply and demand.

Annual Report

A comprehensive report on a company's activities throughout the preceding year, intended to give shareholders and other interested parties information about the company's performance and financial health.