Question

question 20 (2.5 points) ✔ saved
fran is a director for hudson ice cream cones inc. fran is also a director for columbia ices, inc. when hudson’s board considers a contract with columbia, fran must

a) resign from hudson’s or columbia.

b) make a full disclosure of any conflict of interest.

c) resign from hudson’s and columbia.

d) use her business judgment to rule on the deal.

question 21 (2.5 points)
commercial farming, inc., attempts to buy a significant number of the shares of cornfield farming company through a public offer to shareholders. this is

a) a consolidation.

b) a dissolution.

c) a short - form merger

Explanation:

Question 20

In corporate law (subfield of Law under Social Science), when a director has a conflict of interest (serving on boards of two companies with a potential contract between them), the director must disclose the conflict. Resigning from both or one isn't the standard first step; using business judgment without disclosure is unethical. So the correct action is full disclosure of conflict of interest.

• Option a (consolidation): Involves combining two companies into a new one, not just share purchase.
• Option b (dissolution): Ends a company, not a share purchase.
• Option c (short - form merger): Requires ownership of a majority of shares and is a merger, not a public offer to shareholders for share purchase. However, if we assume there's a missing option (like a tender offer), but among given, none is correct. But if we re - evaluate, a public offer to buy shares is a tender offer (not in options), but maybe a typo. If we have to choose from given, perhaps a mistake, but if we consider, a tender offer (not listed) is the correct concept, but among given, no correct option. But maybe the intended answer was a tender offer - like, but since not present, perhaps the question has an error. But if we proceed with given, none of a - c is correct. But maybe the original question had a d option (like a tender offer). Assuming a typo, but based on given, we can note:

Answer:

b) make a full disclosure of any conflict of interest.

Question 21 (assuming the options might have a missing d or other, but based on given options and corporate finance/M&A terms):