What type of transaction employs special committees made up of disinterested board members who review the transaction to determine if it is entirely fair to the corporation?
A)hostile takeover
B)self-dealing
C)rational business purpose
D)corporate opportunity

Question

Quizplus · Accepted Answer

Self-dealing transactions involve a conflict of interest for a director or officer of a corporation, and special committees made up of disinterested board members can review the transaction to ensure it is fair to the corporation. This process helps to protect the corporation and its shareholders from any potential misuse of authority. Hostile takeovers involve an aggressor company attempting to acquire control of another company without the support of the target company's board of directors. Rational business purpose refers to a legitimate reason for a transaction, such as expanding the company's operations or diversifying its portfolio. Corporate opportunity refers to a situation where a director or officer of a corporation takes personal advantage of a business opportunity that should belong to the corporation.

What Type of Transaction Employs Special Committees Made Up of Disinterested