Gerhardt is the president of the Pacer Bicycle Company. He also serves as a director of the Flexible Tire Company. It occurs to Gerhardt that both companies could benefit from a contract in which Flexible agrees to supply Pacer with tires for its bicycles. If Gerhardt wishes to negotiate a contract between Pacer and Flexible, which of the following is correct?
a. The contract will be void as a conflict of interest.
b. Under the RMBCA, the contract is permitted if it is fair and reasonable to both corporations, or Gerhardt fully discloses all information relating to the transaction and the contract is approved by either the board of disinterested directors or the shareholders.
c. The contract is a clear conflict of interest and will be avoidable by either company even with disclosure.
d. Both the contract will be void as a conflict of interest and the contract is a clear conflict of interest and will be avoidable by either company even with disclosure.
b
You might also like to view...
Dumping occurs when ________
A) a company entering a foreign market charges either less than its costs or less than it charges at home B) a company entering a foreign market charges more than the price in its home market C) a company entering a foreign market charges prices that are lower than those charged by its competitors in this market D) a company sets its price equal to its average cost of production E) a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country
________ are databases composed of citations to articles in journals, magazines, newspapers, marketing research studies, technical reports, government documents, and the like
A) Offline databases B) Bibliographic databases C) Online databases D) Internet databases
The approach by a firm to give away a base product and make money on the complementary products required to make the base product useful is called:
a. installed base pricing b. no alternative pricing c. captive product pricing d. monopolistic pricing e. predatory pricing
Exporting is often the first step toward international marketing.
Answer the following statement true (T) or false (F)