Director is both a director of Corporation and a shareholder in Corporation. Corporation seeks to purchase Research Co., a firm with many marketable patents. If Corporation is successful in marketing the patents acquired by purchasing Research Co., the value of Director's shares of stock in Corporation will significantly increase. Director: Question 3 options: 

a) has a conflict of interest, because Director is financially interested in the transaction. 

b) has a conflict of interest, and must disclose it to the board of directors of Corporation. 

c) has no conflict of interest, as Director is a shareholder of Corporation. 

d) both a and b