Asked by
Jarvis Tillman
on Dec 18, 2024
Verified
Regarding the liability of Simone, if any, for purchasing the stock at below its fair market value, which of the following is true?
A) If the board wanted to offer it to her, they had that right, and there is no consequence to Simone.
B) She is liable for double the stated corporate value of the stock in addition to any price she already paid.
C) She is liable for the stated corporate value of the stock in addition to any price she already paid.
D) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares.
E) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares plus a $10,000 penalty.
Stated Corporate Value
The value of a corporation as listed in its corporate documents or financial statements, often used in legal and financial contexts.
Liability
Liability refers to the legal responsibility for one's actions or failings, which can result in the obligation to compensate for harm caused or to fulfill a contractual agreement.
- Examine the fundamental legal doctrines and defenses used in corporate management, particularly focusing on the business judgment rule.
Verified Answer
MP
Learning Objectives
- Examine the fundamental legal doctrines and defenses used in corporate management, particularly focusing on the business judgment rule.