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Which of the Following Actions Would Be Considered Illegal

Question 5

Multiple Choice

Which of the following actions would be considered illegal?


A) A CEO orders a new corporate jet , so that she can fly separately from the other executives of the firm and take her dog with her, even though the firm is currently financially
Distressed.
B) The management of a firm that is a hostile takeover target due to poor management issues massive amounts of debt to fight against it.
C) The executive managers of a firm each received a 30% bonus in a year in which their firm lost 50% of its value.
D) Rather than using a competitive underwriting, the CEO of a small, publicly traded, brokerage firm gives the contract for a new issue of the firm's debt to an investment
Banking firm that has agreed to allocate extra shares of its IPOs to her.

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