Fact Pattern 36-4
Diversified Corporation's articles of incorporation prohibit a sale of its assets with?out a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for.
-Refer to Fact Pattern 36-4. With respect to Diversified's share?holders, this conduct is most likely

Question

Fact Pattern 36-4 
Diversified Corporation's articles of incorporation prohibit a sale of its assets with?out a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for.
-Refer to Fact Pattern 36-4. With respect to Diversified's share?holders, this conduct is most likely

Quizplus · Accepted Answer

The conduct of Diversified Corporation's officers in selling assets without notice to the board, failing to pay taxes on time, and not accounting for funds departs from the standards of fair dealing and is likely to be considered oppressive to the shareholders. The fact that Diversified's articles of incorporation prohibit a sale of its assets without a vote of the board of directors further supports this finding. The other answer choices are not accurate or relevant to the scenario.