Multiple Choice
Linda,a manager and a currency trader for United Traders,has specific instructions from the CEO not to take a position on any currency in excess of $1 million.Linda sees what she believes to be a sure thing and takes a $20 million position.Unfortunately,the transaction goes bad and costs United $60 million.Does Linda have any liability to United?
A) Yes,because Linda violated specific instructions and is,therefore,liable for the company's loss.
B) No,Linda's actions are a normal market practice.
C) Yes,because Linda engaged in insider trading.
D) No,Linda is protected by the business judgment rule.
Correct Answer:
Verified
Correct Answer:
Verified
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