Which of the Following Is an Example of a Breach

question 112

Multiple Choice

Which of the following is an example of a breach of a fiduciary duty?

• A) A promoter of a corporation sold property to the corporation for four times what he paid for it after he made full disclosure of his interest to an independent board of directors, which voted for the purchase.
• B) A partner in a firm learned of a business forced to sell some heavy equipment. Although the partnership could have used the equipment, he bought and sold it at a substantial profit before the partnership was given a chance to buy it.
• C) The directors of the corporation, contrary to the request by the shareholders, refused to declare dividends.
• D) A shareholder of ABC Ltd., a trucking corporation whose shares are listed on the Vancouver Stock Exchange, is working as an employee for ABC Ltd.'s competitor, Jonstone Trucking.
• E) A shareholder of a corporation voted in favour of an acquisition by the corporation at the annual general meeting because he secretly had an interest in the corporation being purchased.

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Definitions:

MRP

Marginal revenue product, the additional revenue generated by employing one more unit of a resource.

Wage Rate

The standard amount of pay given to employees per unit of time, which may vary based on industry, occupation, and experience.

Competitive Labor Market

A market where workers compete for jobs and employers compete for workers, influencing wages and employment conditions.

Marginal Revenue Product

The increase in revenue generated by employing one more unit of a resource.