If a Purchase or Sale by an Officer,director,or Greater-Than-10% Shareholder

question 27

Multiple Choice

If a purchase or sale by an officer,director,or greater-than-10% shareholder that would otherwise result in recoverable short-swing profits was involuntary and did not involve the payment of cash and if there was no possibility of speculative abuse of inside information,than a court may hold that it was a(n) __________ to which no liability will attach.

• A) innocent transaction
• B) approved negotiation
• C) unorthodox transaction
• D) designated sale

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Definitions:

Affective Commitment

The emotional attachment and involvement an employee feels towards their organization, influencing their willingness to stay and contribute positively.

Genetic Predisposition

The increased likelihood of developing a particular disease or condition based on an individual's genetic makeup.

Realistic Job Previews

A strategy used by employers to give prospective employees a true sense of what their roles and responsibilities will entail should they be hired.

Normative Commitment

An employee's psychological attachment to, and feeling of obligation towards, their organization.