Unlike the Directors of Other Corporations, the Directors of a Close

question 33

True/False

Unlike the directors of other corporations, the directors of a close corporation can take any action without breaching their fiduciary duties.

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Definitions:

Expected Rate of Return

The profit or loss that an investor anticipates on an investment, expressed as a percentage of the investment’s cost.

Recession

A recession is an economic downturn spread across the economy lasting more than a few months, often visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Booming Economy

A fast-growing economy characterized by rapid increases in production, sales, and typically, employment levels.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.