Linda,a Manager and a Currency Trader for United Traders,has Specific

question 49

Multiple Choice

Linda,a manager and a currency trader for United Traders,has specific instructions from the CEO not to take a position on any currency in excess of $1 million.Linda sees what she believes to be a sure thing and takes a $20 million position.Unfortunately,the transaction goes bad and costs United $60 million.Does Linda have any liability to United?

• A)Yes,because Linda violated specific instructions and is,therefore,liable for the company's loss.
• B)No,Linda's actions are a normal market practice.
• C)Yes,because Linda engaged in insider trading.
• D)No,Linda is protected by the business judgment rule.

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Definitions:

Females

Individuals of the human species who are biologically characterized by two X chromosomes.

Genetic Lottery

A metaphorical expression referring to the random and uncontrollable nature of genetic inheritance from parents to offspring.

Conceived

Thought of or formed an idea; in biological terms, refers to the moment a sperm fertilizes an egg leading to pregnancy.

Zygote

This is the earliest cell that comes into existence once an egg cell is fertilized by a sperm cell, marking the initial stage in the development of an embryo.