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BigorU [14]
4 years ago
12

Questions: 1. What must the shareholders prove to recover? 2. What does the court say is the relationship between good corporate

governance, liability, and business judgment? 3. What alternatives to litigation do shareholders have?
Business
1 answer:
Dahasolnce [82]4 years ago
7 0

Answer:

1. What must the shareholders prove to recover?

The shareholders say that the Board of Directors had given Ovitz more as written in Employment Agreement. Ovitz had more incentives & other facilities as compared to other employees.

And that is unfair with the other employees. Because of this the shareholders had filed a complaint against  the company about the remuneration of O.

2. What does the court say is the relationship between good corporate governance, liability, and business judgment?

The court has to decide that whether the Board of directors should be responsible for the decision-making process and wasting corporate assets or they have power and authority to do anything they want.

Rules of corporate governance of any company are mentioned in their terms and conditions and in this case the Board goes beyond the requirements and because of this liability of company will also increase.

3. What alternatives to litigation do shareholders have?

They have many alternatives;

1) Negotiation with the Directors

2) Dealing with small claims electronically.

3) Through Discussion

4) Involvement of some mediator

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The company's net cash flow is $64.7 million

Explanation:

Brooks Sisters' operating income (EBIT) is $168 million and the company's interest expense is $17 million.

Taxable income = $168 - $17 = $151 million

The company's tax rate is 40.0%, and its operating cash flow is $142.1 million:

Tax = $151 x 40% = $60.4 million

The company's net cash flow =  Operating cash flow - The company's tax - the company's interest expense = $142.1 - $60.4 - $17 = $64.7 million

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3 years ago
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Marvin company negotiated the purchase of a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the
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In the given transaction Marvin Company has purchased a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the remainder over seven years it means the balance (250000-100000) = 150,000 is a liability for Marvin company.

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And there is an increase in the liabilities by $150,000.


Hence the correct answer is:

d. $150,000 net increase in assets and $150,000 increase in liabilities




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Since Desktop Computer Company would like to calculate their cash conversion cycle, the factors included in computing this metric are:

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