Mark is the treasurer of Sky-Hi-Tech Corporation and, as such, he is responsible for protecting
he assets of the corporation. One of Mark's subordinates, Jill, is in charge of reconciling the
monthly corporate bank statements.
Over a period of several months, Jill embezzles a large
amount of money from Sky-Hi-Tech, covering up the theft using her bank reconciliations. If
Mark had adequately supervised Jill, she could not have embezzled this money. Mark's actions
(or inactions) constitute a breach of his duty of:
A) Loyalty.
B) Obedience.
C) Ultra vires.
D) Due care.
E) This is not a violation of any duty due to the business judgment rule.
D
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Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA have opened stores in the United States. This is an indication of:
A) U.S. retailers were lagging behind in collecting demographic information. B) the Mexican retailers provide better products than American stores. C) the Hispanic American segments represent a great opportunity for marketers. D) American businesses cannot compete with Mexican retailers. E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.
Maintaining consistent high product quality
a. is both required for and a by-product of the just-in-time environment. b. is difficult to obtain in a just-in-time environment because of the severe time constraints imposed by the just-in-time environment. c. requires quality control inspectors at each step of the production process. d. is too expensive to obtain in a just-in-time environment.
Profitability ratios capture both risk and return
Indicate whether the statement is true or false
If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process.
Answer the following statement true (T) or false (F)