Fact Pattern 36-4

question 22

Multiple Choice

Fact Pattern 36-4
Diversified Corporation's articles of incorporation prohibit a sale of its assets with?out a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for.
-Refer to Fact Pattern 36-4. With respect to Diversified's share?holders, this conduct is most likely

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

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Definitions:

Painful Stimuli

External or internal factors that cause discomfort or distress, prompting a physiological or psychological pain response.

Reception

The act or process of receiving or being received, often referring to the area in hospitals or offices where guests are greeted.

Reaction

A biological, chemical, or physical response to a specific stimulus.

Hearing

The sense through which sounds are perceived, involving the process of detecting and interpreting sound waves.