Malcolm Obrien was asked by Theresa Cho to be a director of her company. Malcolm agreed, but apart from accepting the title of director he had no idea what was going on in the business. There were never any formal board of directors meetings
The business went bankrupt and Revenue Canada sued Malcolm for $10,000 for income tax withheld by the company from employee wages but not remitted. The money was used to try to keep the business afloat. The employees are also suing for five months' unpaid wages. Which of the following is true?
A) Malcolm is not liable for either claim as he had no involvement with the business.
B) Malcolm is not liable for the Revenue Canada claim as he didn't receive any of the money personally.
C) Malcolm is liable for the wage claim
D) Malcolm is liable for the Revenue Canada claim.
E) Both C and D
E
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Mini-Case Question. Determine the margin per unit if the company needs to sell 40 million units in order to break even
A) $10 per unit B) $8 per unit C) $4 per unit D) $2 per unit E) $1 per unit
Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2014 are as follows: January 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2013 was 10,000 units. On average, 25 percent of the futons to be sold in the next month are produced and kept as ending balance in finished goods inventory. The planned selling price is $150
per unit. What would be the sales budget for March of Fantastic Futons? A) $7,200,000 B) $8,000,000 C) $6,750,000 D) $9,000,000
Which of the following is not an example of an IP-related litigation?
A. Apple and HTC sue each other based on patent infringement. B. China is sued by U.S. manufacturers of video games. C. Apple sues smartphone makers running Android, the Google mobile operating system. D. The United States sues to get access to physical plant assets in China.
Unfavorable variances are represented by credit balances in the overhead account
Indicate whether the statement is true or false