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3 years ago

The business judgment rule has been replaced by good faith statutes in most states. True or False

Business

1 answer:

yan [13]3 years ago

5 0

Answer:

False

Explanation:

The business judgement law is the law principle that provides honest business decision made in good faith and on which no further investigations are actionable even the decision is mistaken or harmful.

The Business Judgement Rule States:

An officer who makes business judgement in good faith fulfills (the day of care) if he

Is not interested in subject of his business judgement
Is informed with subject of his business judgement to the extent (he) reasonably believes to be appropriate under the circumstances
Rationally believes that his business judgement is in the best interest of the company

Moreover, none of the states has replaced it with good faith statues as it's the law for taking critical business decisions.

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Alice purchased office furniture on September 20, 2018, for $100,000. On October 10, 2018, she purchased business computers for

lana [24]

Answer:

The correct answer is $30,290.

Explanation:

According to the scenario, the computation can be done as follows:

This applies regular MACRs

So, As furniture is the Seven year property,

So, the cost recovery deduction for the furniture = $100,000 × .1429

= $14,290

And The computer is a five year asset

So, the cost recovery deduction for the Computer = $80,000 × .20

= $16,000

So, Total Cost recovery deduction = Cost of recovery deduction for furniture + cost of recovery deduction for computer

= $14,290 + $16,000

= $30,290

Hence, the cost recovery deduction for the business assets for 2019 is $30,290.

8 0

3 years ago

Your sister receives the December bank statement (included at end of assignment). You reconcile that statement to your records.

Tanya [424]

Answer:

2. True

Bank charges are the various fees account holders are charged in respect of maintenance of the account along with any other charges incurred in respect of specific transactions (e.g. cheque clearance charges, fund transfer charges, collection charges, etc). Bank charges are charged directly to the customer account thereby reducing the bank balance shown in the bank statement. These charges are usually not recorded by the business until the bank provides the bank statement at the end of a month which is why balance as per bank statement may be lower than the cash book balance.

5 0

3 years ago

A fast-food restaurant accepts five dollars in cash as payment for three tacos. This is an example of money's role as a:

shtirl [24]

Answer:

The correct answer is c. medium of exchange.

Explanation:

Money is a financial asset that serves as an intermediate platform to optimize the exchange of goods and services, avoiding the inaccuracies of bartering, that is, the direct exchange of goods and services. Therefore, for a good to be qualified as money, the following three criteria must be met and that are the three main functions that money fulfills in a modern economic system:

Exchange medium: to avoid the inefficiencies of a barter system. When a good is required for the sole purpose of using it to be exchanged for other things, it owns this property. In addition, money should be a lightweight and easy to store and transport.
Unit of account: When the value of a good is frequently used to measure and compare the value of other goods or when its value is used to denominate debts, it is said that the good possesses this property. The unit of account means that it is the unit of measure that is used in an economy to set prices.
Conservation of value: When a good is acquired with the objective of preserving commercial value for future exchange, then it is said to be used as a store of value. Money is a store of value but not the only one, any asset that maintains its purchasing power over time will serve as a store of value.

4 0

3 years ago

Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled

VashaNatasha [74]

Answer: 1. Special order price, direct materials, direct labor, and variable overhead.

2. Increases by $10,000,000

Explanation:

1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)

These include special order price, direct materials, direct labor, and variable overhead.

2. By how much will operating income increase or decrease if the order is accepted?

This will be:

= Units × (special order price-variable costs)

= 5000 × ($18000 - $10000 - $2000 - $4000)

= 5000 × $2000

=$10,000,000

Therefore, it increases by $10,000,000

3 0

4 years ago

Which of the following should show a profit in order for a financial institution to give a the company a loan

Andrew [12]

Answer:

A I think not really sure hope this helps you

3 0

3 years ago

Read 2 more answers