Ron Sanyo is a director of Tippet industries, a business that imports clothing. Ron learns of a good deal on clothes from Cuba and wants to start his own company to take the Cuba deal
If he does so, he will have breached which, if any, of the following?
A) Director's negligence
B) Shareholder oppression
C) Fiduciary duty
D) Both A and B
E) All of the above
C
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The depreciation method using a steadily decreasing rate applied to the depreciable cost of the asset, resulting in successively smaller depreciation charges over the life of the asset is called the
a. declining-balance method. b. sum-of-the-years'-digit method. c. units-of-production method. d. straight-line method.
Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 80,000Total fixed manufacturing overhead cost$416,000Variable manufacturing overhead per machine-hour$3.10The estimated total manufacturing overhead is closest to:
A. $248,000 B. $664,000 C. $416,000 D. $416,003
Management can expect various benefits to follow from implementing a system of strong internal control. Which of the following benefits is least likely to occur?
a. Reduced cost of an external audit. b. Preventing employee collusion to commit fraud. c. Availability of reliable data for decision-making purposes. d. Some assurance of compliance with the Foreign Corrupt Practices Act of 1977. e. Some assurance that important documents and records are protected.
A trustee in bankruptcy under Chapter 7 may sell the property of the debtor's estate
a. True b. False Indicate whether the statement is true or false