Ray is a shareholder of a small company. When the director falls to undertake an action it falls under derivative suit.
Explanation:
- Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
- If in a company the employees, the directors as well as the officers are not ready to file a complain against the third party then the shareholder has the right to file a complaint against the third party.
- Derivative suit is normally filed by the shareholder when there is a mismanagement in the company. To stop the illegal work this action is being taken.
Answer:
Explanation:
The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand.If the satisfaction obtained from a good declines, then buyers are willing to pay a lower price, hence demand price is inversely related to quantity demanded, which is the law of demand.
Answer:
Spend 10% on clothing and 10% on entertainment.
Explanation:
There are some expenses that you can lower that will not radically affect your lifestyle while other expenses should be more important.
For example, you shouldn't try to save money by eating less or going to live in an ugly place where you pay a very small rent.
If you want to save money, then you should cut some costs from non essential expenses like entertainment and new clothes.
Answer:
The correct answer is letter "D": net income for the year will be overstated.
Explanation:
Net Income is an important measure of how profitable the company is over a period of time. Net income is calculated by taking the total revenue and subtracting the business expenses which results in the earnings before tax. After taxes are deducted, the amount obtained will be the firm's net income.
Prepaid insurances are considered expenses of a company. Thus, <em>if the payment of the prepaid insurance was not recorded, the net income of the firm will be overstated.</em>
The most cost effective way for John to buy a house is on installment basis or by using up all his savings