Expense a Is a Fixed Cost Expense,B Is a Variable

question 40

Multiple Choice

Expense A is a fixed cost expense,B is a variable cost.During the current year the volume of output has decreased.In terms of cost per unit of output,we would expect that

• A)expense A has remained unchanged.
• B)expense B has decreased.
• C)expense A has decreased.
• D)expense B has remained unchanged.

Recognize the legal rights of shareholders in small private corporations and public companies.

Analyze the implications of corporate financial instruments such as debentures and mortgage bonds.

Understand the doctrine of corporate opportunity and its impact on fiduciary duties.

Appreciate the role of shareholder agreements in protecting the interests of minority shareholders.

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Definitions:

Substantive Law

The body of law setting out rights and duties that affect how people behave in organized social life. See also procedural law.

Criminal Law

The body of law that pertains to crime and punishment, regulating social conduct and proscribing threatening, harming, or otherwise endangering the health, safety, and moral welfare of people.

Public Law

The branch of law that governs the relationship between individuals, corporations, and the state, including constitutional, administrative, and criminal law.

Plain Meaning

A principle in legal interpretation that when the words of a statute are clear, they should be applied according to their natural and ordinary meaning.