Answer and Explanation:
The ethical issues that occurs in the case when a corporate insider wants to purchase or sells in the firm where an individual works are as follows:
1. The information could be misuse
2. It would become unfair for the investors
3. The trust could be broke also it would create the discrimination with the other investors
4. The insider trading lowers the size of the market that ultimately decrease the volatility of the market
Learning.
Or at least I believe so. Are there multiple choice?
Answer:
The correct answer is letter "C": The Business Judgment Rule.
Explanation:
The Business Judgment Rule is a law that protects a company's Board of Directors (BoD) from inconsistent allegations from shareholders stating that the BoD is acting against the stakeholders' interest. The law presumes that members of the BoD act in "<em>good faith</em>" and that they do not always make the best decisions.
The Business Judgment Rule helps managers, in such a way, to avoid laws where there is no substantial proof that they had intentions to go against the investors' will.
Answer:
Explanation:
For computing the incremental effect on the company's overall profit between reworking and selling the material rather than selling it as is as scrap, we have to do the comparison between these two.
The calculation is shown below:
= Scrap value of material - rework sale value
= $30,100 - $30,800
= - $700
The other items which are shown in the question are irrelevant for comparison. Thus, it is ignored.
Hence, the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap is show a loss of $700
