Fact Pattern 41-3A (Questions A19-A20 Apply)

question 11

Multiple Choice

Fact Pattern 41-3A (Questions A19-A20 apply)
Atlantic Corporation's articles of incorporation prohibit a sale of its assets with?out a vote of the board of directors.Atlantic's officers sell some assets to Pacific Company without notice to the board.The officers also fail to pay Atlantic's taxes on time,and some Atlantic funds are not accounted for.
-Refer to Fact Pattern 41-3A.With respect to Atlantic's share?holders,this conduct is most likely

• A)not oppressive because it is undertaken by Atlantic's officers.
• B)oppressive because Atlantic's directors may be personally liable.
• C)oppressive because Atlantic's shareholders may be personally liable.
• D)oppressive because it departs from the standards of fair dealing.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Profits

Financial gains obtained after subtracting total expenses from total revenue, from business operations or other investments.