Answer:
Inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm.
Explanation:
A board of directors in most corporations consists of inside directors and outside directors. Inside directors are usually the members of the firm and have direct access to the company's operating. CEO, CFO and CIO are typical examples of inside directors. On the other hand, outside directors are not employees of the firm, nor stakeholders. They have unbiased opinions in board meetings.
Answer:
d. The potential exists for agency conflicts between stockholders and managers.
Explanation:
- A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
Answer:
Debit Estimated Warranty Liability $14,000; credit Merchandise Inventory $14,000.
Explanation:
The journal entry is shown below:
Estimated Warranty Liability A/c Dr $14,000
To Merchandise Inventory $14,000
(Being the customer warranties is settled)
Since we have to settle the customer warranties, so we debited the estimated warranty liability account and credited the merchandise inventory account
Hence, all other options are wrong except last one
Answer:
Capital gain $24,900
Explanation:
Jonas's Stock basis $33,200
Less $8,300
Capital gain $24,900
$24,900 cash distribution - Net share of Ard's taxable income $16,600= $8,300
Therefore Jonas's recognized capital gain
of $24,900
