Helen is the vice-president of Gotspeed Corporation, a company that designs, manufactures and sells sports shoes. Nestor, an independent entrepreneur, designs a new shoe that helps the user's foot grip the shoe better, and he calls it the Anklator. Nestor's friend schedules an appointment for him to meet Helen and present the Anklator for possible adoption by Gotspeed. Instead of presenting the opportunity to Gotspeed's board of directors, Helen pays Nestor's asking price and purchases the Anklator design for herself. She then quits and forms her own company to manufacture and sell Anklator shoes. Helen has breached her duty of loyalty to Gotspeed Corporation by ________.
A. self-dealing
B. usurping a corporate opportunity
C. making a secret profit
D. competing with the corporation
Answer: B
You might also like to view...
Which of the following terms is used to refer to the harmonization present among the accounting rules of different countries?
a. Formal harmonization b. De jure harmonization c. Convergence d. All of the above
Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:
A. $40,000 B. $60,000 C. $70,000 D. $50,000
The order for relief is the final discharge in a Chapter 7 case
Indicate whether the statement is true or false
Pittsburgh Fuels (PF) has been drilling for oil near Lancaster, Pennsylvania. The wells have been productive. Fred Deutsch, a farmer with land next to the PF drilling area, has been able to detect a drill bit beneath the surface of his property. Farmer Deutsch: A) Has no legal means to stop the drilling beneath his property
B) Has no rights to the oil if Pennsylvania is a rule of capture state. C) Has no rights if Pennsylvania is a Riparian state. D) Can stop the drilling as a trespass.