Alex Is a Director of ABC,Inc

question 38

Multiple Choice

Alex is a director of ABC,Inc.Alex wants to personally make a major purchase from Bravo Co.If it knew of the opportunity,ABC also might be interested in making that same purchase.Alex must

• A)advise the boards of both corporations of his conflict of interest.
• B)first offer the opportunity to make the purchase to the disinterested directors of ABC or its shareholders.
• C)resign from the board of directors.
• D)abandon the idea of making the purchase himself.

---

Definitions:

Allocation of Resources

The process of distributing available resources among various uses to satisfy the needs and wants of the society.

Taxes

Financial charges imposed by a government on individuals, businesses, or other entities to fund public spending and various services.

Prices

The monetary value assigned to goods and services in a market, determining the exchange rate in transactions.

Decisions

The process of making choices or conclusions after consideration, often involving options in personal, professional, or organizational contexts.