Alex is a director of ABC, Inc Alex wants to personally make a major purchase from Bravo Co If it knew of the opportunity, ABC might be also interested in making that same purchase. Alex must
A) advise the boards of both corporations of his conflict of interest
B) first offer the opportunity to make the purchase to the disinterested directors of ABC or its shareholders.
C) resign from the board of directors.
D) abandon the idea of making the purchase himself.
B
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The understatement of the ending inventory balance causes:
A. Cost of goods sold to be overstated and net income to be overstated. B. Cost of goods sold to be understated and net income to be understated. C. Cost of goods sold to be understated and net income to be overstated. D. Cost of goods sold to be overstated and net income to be correct. E. Cost of goods sold to be overstated and net income to be understated.
________ set an upper limit on the interest rate that can be charged on certain types of loans
A) Federal banking reforms B) State usury laws C) Congressional committees D) Chambers of commerce
The bullwhip effect ______.
A. results from information distortion B. is due to low elasticity of demand C. is due to low elasticity of supply D. results from too much information
If the principal debtor defaults, the surety has rights against the principal debtor, third parties, and cosureties. These rights would include:
a. exoneration. b. reimbursement. c. subrogation. d. contribution. e. All of these.