Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsanitary conditions caused by Vic, a Tasty Foods employee, in the company's warehouse. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection reveals no such corrections. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable?
What will be an ideal response?
The answer to both questions is yes. A corporation may be held liable for the crime of its employee if (1) the criminal act is within the scope of the employment and the purpose of the statute defining the act as a crime is to impose liability on the corporation, (2) the crime consists of a failure to perform a specific duty imposed on corporations by law, and (3) the crime was authorized by one of the corporation's "high managerial agents." Here, all of these elements exist. The unsanitary conditions in the warehouse are within the employee's scope of employment, the crime consists of a failure to keep the warehouse clean, and the crime was authorized by a company vice president. As for the president's personal liability, if she has the authority and the responsibility to deal with the situation, she can be held personally liable. A corporate officer must have the authority and the responsibility to deal with the situation. Personally liability is imposed in such circumstances, not because the corporate officer knew about the crime or intended it, but because the officer is in a "responsible relationship" to the corporation and has the power to prevent the crime. Under this "responsible corporate officer" doctrine, a corporate officer can be held liable for an employee's violations of the law. This liability may be imposed regardless of whether the officer participated in, directed, or knew about the violation.
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While you are discussing the energy efficiency of your company's golf carts with a prospect, she questions whether your carts are heavier than that of your competitor's. You are aware that your carts are slightly heavier than the competitor's carts. What should you do about this objection?
A. Ignore it and talk a little faster to regain control of the sales interview. B. Pass over it for now and cover it just before the close. C. Ignore it and continue as you had planned. D. Answer the question and proceed with the presentation. E. Inform the customer that weight is not an important parameter and proceed with the presentation.
What is the last step in preparing pro forma financial statements?
a. Project the statement of cash flows from amounts on the projected balance sheet and income statement. b. Project operating revenues and operating expenses other than the cost of financing and income taxes. c. Project the assets required to support the level of projected operating activity. d. Project the financing (liabilities and contributed capital) required to fund the level of assets. e. Project the cost of financing the debt, income tax expense, net income, dividends, and the change in retained earnings.
Dividends received by a corporation on an investment in the common and preferred stock of another corporation, where ownership in the dividend paying corporation is less than 20%, is subject to 70 percent exclusion for tax purposes
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Purchasing agents accepting a pleasure trip from a supplier when no bids are pending is still an ethical violation
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