Before going public, a company needs to take out _________________??_that will protect the officers and directors from being held personally liable if a shareholder suit is brought based on incorrect information in the Registration Statement.
A) workers compensation
B) a personal liability insurance policy
C) an underwriter's policy
D) business insurance

Question

Quizplus · Accepted Answer

A personal liability insurance policy, often referred to as Directors and Officers (D&O) insurance, is specifically designed to protect the personal assets of corporate directors and officers in the event they are personally sued for the way they managed a company's affairs, including situations involving incorrect information in the Registration Statement during the IPO process.

Before Going Public, a Company Needs to Take Out _________________??_That