Susan Is Hired to Manage a Business

question 37

Multiple Choice

Susan is hired to manage a business.This means that she has the authority to make contracts that are reasonably necessary for conducting the business.This is called:

• A) express authority.
• B) apparent authority.
• C) implied authority.
• D) fixed authority.

---

Definitions:

Lockup Agreement

A contract between a company's insiders and underwriters that prohibits the sale of shares for a specified period following an initial public offering.

Greenmail

A tactic where a company buys back its own shares at a premium from a hostile party to prevent a takeover.

Target Management

The process of identifying, organizing, and prioritizing business objectives and key performance indicators to achieve strategic goals.

White Knight

A post-offer technique where a target company invites another suitor to outbid a hostile bidder. The second suitor agrees that it will retain the existing management.