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icang [17]
2 years ago
5

Brown, the president and director of a corporation engaged in owning and operating a chain of motels, was advised, upon what see

med to be good authority, that a superhighway was to be constructed through the town of X, which would be a most desirable location for a motel. Brown presented these facts to the board of directors of the motel corporation and recommended that the corporation build a motel in the town of X at the location described. The board of directors agreed, and the new motel was constructed. The superhighway plans were changed, however, after the motel was constructed, and the highway was never built. Later, a packinghouse was built on property adjoining the motel, and the corporation sustained a considerable loss as a result. The shareholders brought an appropriate action against Brown, charging that his proposal had caused a substantial loss to the corporation and seeking recovery of that loss from Brown. What result
Business
1 answer:
weqwewe [10]2 years ago
8 0
An officer or director of a corporation is not personally liable for loss sustained by the corporation as the result of the exercise of poor or mistaken business judgement. They are only liable for a loss resulting from his or her negligence of failure to exercise reasonable care. In this situation, Brown was exercising a business judgement in good faith with due care. Since a superhighway was to be constructed through the town of X, he believed it was in the corporation's best interest to build a motel there. Brown was not guilty of negligence, so the decision would be in favor of Brown.
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Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new j
SCORPION-xisa [38]

Answer:

The correct answer is C. If the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. The policy will cause the natural rate of unemployment to fall, which will shift the long-run aggregate supply curve to the right .

Explanation:

Unemployment occurs when there is a greater supply of labor than what is demanded. This means that there are people who seek employment at the regular wage rates, but who are unable to get employment in the open labor market. Unemployment also means that people who actually want to work (and who are unemployed) cannot work with what they are qualified for.

Unemployment is a social problem, and low unemployment and high employment are important in order to develop and maintain a welfare society. For each individual, work is the most important insurance for their own welfare and social inclusion.

If the aforementioned law were approved, and the unemployed began to look for work imminently (even leaving aside some pretensions), many of them would get a job in a shorter time than if this law were not approved, which would decrease the country's unemployment rate.

6 0
3 years ago
At the end of the year, Sheffield Co. has pretax financial income of $616,000. Included in the $616,000 is $78,400 interest inco
SVEN [57.7K]

Answer:

$173,820

Explanation:

pretax financial income $616,000

- interest income on municipal bonds ($78,400)

+ depreciation ($67,200 - $50,400) = $16,800

+ fine for dumping hazardous materials $25,000

taxable income = $579,400

income taxes payable = $579,400 x 30% = $173,820

Fines are not tax deductible, and since depreciation for tax purposes is lower than accounting depreciation, you must add them. But since municipal bonds are not taxable, they must be subtracted.

3 0
3 years ago
Write a claim that responds to the question: Why can transferring energy into or out of a substance change molecules' freedom of
nydimaria [60]

Answer:

hope this help u

Explanation:

Transferring energy into or out of a substance changes its temperature, which changes the molecules' freedom of movement. Claim 2: Transferring energy into or out of a substance changes the molecules' kinetic energy, which changes their freedom of movement.

8 0
3 years ago
Suppose that there is a checkable deposit intoYourBank. Which of the following statements is an accurate description of the chan
maks197457 [2]

Answer: Option (C) is correct.

Explanation:

The required reserves are the reserves that banks have to keep it with central bank. Required reserves are the fraction of Check-able deposits. The required reserves are determined by multiplying the deposited amount with the required reserve ratio.

Required reserves = Deposited amount × Required reserve ratio

Required reserve ratio is set by the central bank.

3 0
3 years ago
You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the one-ye
svetoff [14.1K]

Answer:

2.58%

Explanation:

Mathematically, the relationship between the different interest rates using the equation is shown below:

(1+S2)^2=(1+S1)^1*(1+2y1y)

The spot rate in year 2 is the same as the spot rate in year 1 multiplied by the 1-year forward rate beginning in year 2.

S2=2-year rate =2.34%

S1=1-year rate =2.10%

2y1y=one-year interest rate 2 years from now=the unknown

(1+2.34%)^2=(1+2.10%)^1*(1+2y1y)

(1+2y1y)=(1+2.34%)^2/(1+2.10%)^1

2y1y)=(((1+2.34%)^2/(1+2.10%)^1)-1

2y1y=1.025805642-1

2y1y= 2.58%

The formula shows that borrowing or lending for 2 years at 2.34% is the same as borrowing or lending at 2.10% in year and 2.58% forward rate in year 2

8 0
3 years ago
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