Give brief explanation as to why each response is correct or incorrect.

Laser Corporation (a closely held corporation) lent $5,000 to Mr. Jackson, a member of its board of directors. Mr. Jackson was also vice-president of operations. The board of directors, but not the stockholders, of Laser authorized the loan on the basis that the loan would benefit the Corporation. The loan made to Mr. Jackson is

a. Proper.

b. Improper because Mr. Jackson is an employee.

c. Improper because Mr. Jackson is a director.

d. Improper because Mr. Jackson is both a director and an employee.