Quiz 34: Management Duties

Business

Stahl was not competing against Ampersand when he wrote Philly's Beat, so his actions should not be considered to be self-dealing. The right to produce Philly's Beat did not belong to Ampersand alone, as it was something that Stahl wrote himself. The opportunity to produce Philly's Beat did not belong to Ampersand; Stahl is free to produce the play he wrote with any corporation he chooses.

Board of Directors in any enterprise comprise of people from all aspects and areas of the business. These people are the expertise in their own domain and thus board of directors are considered as the lifeline of the organization. A staggered board of directors is a board of people that is made up of different classes of directors. Elections for the directors of staggered boards usually happen on an annual basis. The reason why some companies adopt a staggered board of directors as an antitakeover defense because staggered board of directors come and hail from different backgrounds, thus while making a decision on major issues the mix of suggestions are always useful for the organization. Staggered board of directors comes up with different viewpoints and after scrutinizing each and every option given by them perfect decision is bound to hail for the organizational benefit and development. Similarly staggered board of directors affects cumulative voting as with different viewpoints and different experiences of different domains these board of director's vote for people or decisions which they find are suitable for the company. This way cumulative voting is achieved in an organization with the help of staggered board of directors.

Self-dealing: Self-dealing means that manager makes decision that derives profit either to himself or another company where manager is related. If a manager engages in self-dealing, then the transaction was of minor importance to company will not protect him from finding that he violated business judgment rule. Hence option img is correct. If a manager engages in self-dealing, then the disinterested members of board approved the transaction will protect him from finding that he violated business judgment rule. Hence, option img is incorrect. If a manager engages in self-dealing, then the disinterested shareholders approved transaction will protect him from finding that he violated business judgment rule. Hence, option img is incorrect. If a manager engages in self-dealing, then the transaction was entirely fair to corporation will protect him from finding that he violated business judgment rule. Hence, option img is incorrect.

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