Answer:
The contract is breached.
Explanation:
A contract is a binding agreement between two parties, where the parties involved are bound to observe the terms mutually decide, no matter what changes occur.
When Flora made a contract with the grocery to sell her products at a certain price, she was bound to do so, irrespective of changes in price level. Since, she does not observes the terms of the contract, the contract is breached.
Answer:
Market research
Explanation:
Market research is the process of finding out about customer wants and needs as well as expanding the current business.
Answer: statement A, The risk of hostile takeover.
Explanation: As the value of the firm in market becomes even less then its book value the investor or purchasers in the market do not have to pay even the net worth of the firm. Thus, it becomes an attractive target in the eye of market investors. In such a situation the board of directors might reject the offers but the bidder will continue to persuade them for acquisition.
Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
- Non-Cash flow items included in net income
- Changes in Working Capital items in net income.
From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Answer:
Fiduciary Duty
1. The two main duties of company directors and top managers are the duty of care and the fiduciary duty of loyalty. The fiduciary duty of loyalty requires that managers act in the best economic interest of the company without engaging in activities that give rise to personal economic conflict.
2. Gaffney did not act ethically in this case. He did not avoid conflict of interest as an officer of Chelsea Corporation.
3. Gaffney and his partners clearly breached their fiduciary duty of loyalty. Within the two years of their employment at Ideal Tape Company, they acted in their personal interest. They were using company resources to conduct researches, setting up a rival company to compete with Ideal.
Explanation:
When a fiduciary duty of loyalty is breached, the corporation can damages. The court will usually base the damages on the salaries of the officer who breached his fiduciary duty within the application period.