If a Director on the Board of ABC Corp

question 80

True/False

If a director on the board of ABC Corp.has shares in Company XYZ and the directors of ABC Corp.are considering the acquisition of Company XYZ,that director must disclose his or her interest; he or she is still permitted to participate in discussions that influence the decision,but may not vote on the decision.

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Definitions:

Current Liability

Short-term financial obligations due within one year or within the entity's operating cycle, whichever is longer, impacting the company's cash flow and liquidity.

Current Earnings

The amount of net income that a company has earned during a specified period, usually the current fiscal quarter or year.

Interest-bearing Note

Interest-bearing Note is a debt instrument where the issuer pays the investor interest on the principal amount, typically at fixed intervals, until repayment of the principal at maturity.

Note's Face Value

The original value of a note receivable or bond as stated on the document before any interest is added.