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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The business judgment rule has been replaced by good faith statutes in most states.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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A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Bi

azamat

Answer:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

Explanation:

Preparation of an economic analysis of the three locations

Memphis economic analysis using this formula.

Economic analysis=(Building, equipment, administration costs+Increased transportation costs+(Expected volume *Labor and materials per units)

Let plug in the formula

Memphis Economic Analysis = $40,000 + $50,000 + (10,000 units *$8/unit )

Memphis Economic Analysis = $40,000 + $50,000 + $80,000

Memphis Economic Analysis = $170,000

Therefore Memphis Economic Analysis is $170,000

Preparation of Biloxi Economic Analysis

Biloxi Economic Analysis = $60,000 + $60,000 + (10,000 units *$4/unit )

Biloxi Economic Analysis = $60,000 + $60,000 + $40,000

Biloxi Economic Analysis = $160,000

Therefore Biloxi Economic Analysis is $160,000

Preparation of Birmingham Economic Analysis

Birmingham Economic Analysis = $100,000 + $25,000 + (10,000 units *$5/unit )

Birmingham Economic Analysis = $100,000 + $25,000 + $50,000

Birmingham Economic Analysis = $175,000

Therefore Birmingham Economic Analysis is $175,000

Therefore the summary of the economic analysis of the three locations are:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

5 0

3 years ago

Having just finalized its new tablet design, Epic Electronics's marketing team plans to begin a rollout with ________ to only on

wlad13 [49]

Answer:

Exclusive distribution; Selective distribution; Intensive distribution

Explanation:

Exclusive distribution refers to the phenomenon where only certain retailers are given the opportunity to carry the product in their retailer shops. For example as in the above case, only one store is exclusively chosen.

Selective distribution is that retailers are carefully selected to engage in the product of selling. For example only a few stores are engaged with in the above question.

Intensive distribution is when all kind of retailers are given the opportunity to keep the products in their shops. For example the last phase described in the question where all sorts of retailers are engaged in selling activity.

4 0

4 years ago

Accourding to the quantity theory of money all countries with the same average annual rates of inlfation must also have the same

xz_007 [3.2K]

True According to the quantity theory of money, if the amount of money in an economy doubles, all else equal, price levels will also double.

Definition: The quantity theory of money states that the money supply and price level in an economy are directly related to each other. When the money supply changes, the price level changes proportionally, and vice versa.

The quantity theory of money states that the price level multiplied by real output is equal to the money supply multiplied by the speed or rotation of the money supply. Speed is generally stable.

Learn more about annual rates at

brainly.com/question/25793394

#SPJ4

4 0

2 years ago

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. B

Elza [17]

Answer:

A) True

Explanation:

Monumental can discharge the contract by frustration. In order for a contract to be discharged by frustration, four conditions have to occur:

An unforeseeable event must occur: In this case the zoning changes were unforeseeable.
No party is at fault: the zoning board made the changes to the zoning of the land.
Performance is impossible: there is no reason why an office building should be built in a residential only area.
The result is radically different than expected: neither Monumental or Champion Builders expected a zoning change to occur.

7 0

3 years ago

Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on insta

inessss [21]

Answer:

See the journal entry below.

Explanation:

Before preparing the journal entry, the following are calculated first:

Income tax expense in 2019 = (Taxable income in 2019 * Tax rate in 2019) + (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($158,000 * 40%) + ($195,000 * 45%) + ($92,100 * 45%) = $193,395

Deferred tax liability in 2019 = (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($195,000 * 45%) + ($92,100 * 45%) = $129,195

Income tax payable in 2019 = Taxable income in 2019 * Tax rate in 2019 = $158,000 * 40% = $63,200

Income tax payable in 2020 = Taxable income in 2020 * Tax rate in 2020 = $195,000 * 45% = $87,750

Income tax payable in 2021 = Taxable income in 2021 * Tax rate in 2021 = $92,100 * 45% = $41,445

The journal entry will look as follows:

Date General journal Debit ($) Credit ($)

31 Dec 2019 Income tax expense 193,395

Deferred tax liability 129,195

Income tax payable 63,200

(To record income tax payable.)

31 Dec 2020 Deferred tax liability 87,750

Income tax payable 87,750

(To record income tax payable.)

31 Dec 2021 Deferred tax liability 41,445

Income tax payable 41,445

(To record income tax payable.)

5 0

3 years ago