One of the directors of Independent Pallet Mill purchases 100 acres of timberland. In order for him to sell the timber from this land to Independent, what must he do? If he does not act properly in this situation, what duty would he violate, and what would be the result?
The transaction will be valid if the disinterested members of the board of directors approve the transaction; the disinterested shareholders approve it; or the transaction is entirely fair to Independent. If the director does not act properly, he would be violating the duty of loyalty to his company. Self-dealing means that a manger makes a decision benefiting either himself or another company with which he has a relationship. If a manager engages in self-dealing, the business judgment rule no longer applies. This does not mean the manager is automatically liable to the corporation or that the decision is automatically void. It just means a court will scrutinize the deal more carefully.
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An "integrated audit" as stated in Section 404 of the Sarbanes-Oxley Act means:
A. the auditor must integrate the same objectives whether auditing internal control or auditing the financial statements. B. the auditor must consider the integrated thoughts and ideas of everyone on the audit staff. C. the auditor must conduct two audits, one on the effectiveness of internal control and one on the financial statements, in an integrated way. D. two independent CPA firms must work together on the audit.
The ________ method is equivalent to a lottery system in which names are placed in a container, the container is shaken, and the names of the winners are then drawn out in an unbiased manner
A) nonprobability sampling B) systematic sampling C) simple random sampling D) stratified sampling
Give three examples of modern marketplaces
What will be an ideal response?
An advantage of downsizing is
a. decreased costs in the long run. b. layoffs. c. one-time losses. d. reduced communication.