Identify the Incorrect Statement About a Shareholder Derivative Lawsuit

question 66

Multiple Choice

Identify the incorrect statement about a shareholder derivative lawsuit.

• A)It is a lawsuit brought by a shareholder on behalf of a corporation against a third party.
• B)A shareholder alleges in the lawsuit that the people charged with acting in the corporation's best interests are failing to do so.
• C)Very few state laws give shareholders a right to sue a third party in a shareholder derivative lawsuit.
• D)These lawsuits are very controversial because they are typically litigated by plaintiffs' lawyers working on contingency fees.
• E)Executives disfavor these lawsuits because oftentimes,shareholders sue the directors themselves for failing to act in the company's best interest.

Analyze the impact of allocating service department costs on operating departments.

Calculate equivalent units of production and costs using the first-in, first-out (FIFO) method.

Distinguish between the weighted-average and FIFO methods in process costing.

Understand and apply the weighted-average method in process costing.

---

Definitions:

Pure Rent

The return to any factor of production that is in fixed supply.

Fixed Supply

A condition where the quantity of a particular good, service, or resource does not change, regardless of the price.

MRP

Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.

Perfectly Elastic

A situation in which the demand or supply for a good or service is infinitely responsive to changes in price.