In Cases Where an Officer or Director Has Been Found

question 46

Multiple Choice

In cases where an officer or director has been found guilty of a crime, he or she may be indemnified under voluntary indemnification if:

• A) he or she had reason to believe that his or her conduct was unlawful.
• B) he or she acts in bad faith.
• C) he or she acted in a manner that he or she believed not to be opposed to the corporation's best interests.
• D) he or she prevails on the merits of the suit against him or her.

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Definitions:

Weighted Average Cost of Capital

A financial metric that calculates a firm's cost of capital, weighted by the proportion of equity and debt financing.

Residual Income

The amount of income that an individual or company retains after accounting for all costs and expenses.