Genna Is a Director of Fab Stuff Corporation

question 21

Multiple Choice

Genna is a director of Fab Stuff Corporation.Without informing Fab,Genna starts up Evertrendy,Inc. ,to compete with Fab.Genna is li?able for breach of

• A)no duty or rule
• B)the business judgment rule.
• C)the duty of loyalty.
• D)the right of participation.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, generally reflected in the cash flow statement as part of a company's financial activities.

Net Cash

The amount of cash available after accounting for cash inflows and outflows in a given period.

Financing Activities

Involves activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

Net Cash

The final amount of cash available after accounting for all cash inflows and outflows, crucial for assessing financial health.