Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.
For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.
Answer:
As long as Mitch acted in good faith and tried to make the best possible decision regarding all available information, and his decision was something that any other person could have made, his mistake has to be considered a bad or negative business judgement (business judgement rule). He thought that his actions would benefit the corporation, but he was wrong and the corporation lost money. That types of mistakes are considered normal and just that, mistakes that anyone can make.
In regards with the second issue, that Mitch is a shareholder and a director of a firm that will directly compete with Numero Uno, he must inform the board about this and resign to either Numero Uno or One of a Kind.
Answer:
Corporate Strategy
Corporate strategy for a diversified or multi-business enterprise:
"concerns strategy initiatives to establish business positions in different industries, whether to hold or divest from existing businesses, strategic actions to boost the combined performance of the set of businesses the company has diversified into, and how to capture cross-business synergies, and then turn them into a competitive advantage."
Explanation:
Corporate strategy is concerned with market growth, stability, and organizational renewal. The purpose of corporate strategy is to achieve greater profitability, higher market share, and sustainable growth in revenue through product and market diversification. A corporate organization, in trying to grow, engages in business restructuring, establishing strategic partnerships, and achieving organizational excellence. These activities emanate from corporate strategic planning.
I would say the answer is D
False. It involves the ability to take charge of things or starting/doing things independently on ones own.
