Answer:
No, because they violated the duty of care
Explanation:
Business judgement rule is a provision that protects the management of a business from frivolous legal action concerning the way it does business.
The court assumes that the management acts in good faith in its fiduciary role, standard of loyalty, prudence, and care.
Duty of care is breached when the management do not make reasonable effort to prevent injury or loss.
In this instance Signal board is not protected by the business judgement rule because they violated duty of care.
Although the offer by Burmah oil is above the valuation a month ago, the board did not bother to do a present valuation or find out if other companies want to buy the subsidiary at a higher price.
Answer:
The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.
This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.
Without theory, managers have to rely too much on intuition, which can often fail.
Answer:
The amount of additional paid-in capital at December 31, 2020 is $97600.
Explanation:
Additional paid-in capital from stock issuance 31400*(13-10) 94200
Additional paid-in capital from treasury stock 3400*(14-13) 3400
Additional paid-in capital at December 31, 2020 97600
Therefore, The amount of additional paid-in capital at December 31, 2020 is $97600.
Answer:
B) Increases as its price falls, ceteris paribus.
Explanation:
The laws of demand and supply are fairly simple:
- law of demand: as the price of a good or service decreases, the quantity demanded for the good or service increases
- law of supply: as the price of a good or service increases, the quantity supplied for the good or service increases
