Pogisa Is a Director at Trendz Corp

question 27

Multiple Choice

Pogisa is a director at Trendz Corp.After studying and consulting with experts,Pogisa votes to have Trendz sell a tract of land for $500 per acre.Within a year,the land is worth $2,000 per acre,and Trendz shareholders want to sue Pogisa for her vote to sell the land.Under the ________,Pogisa may be entitled to legal protection.

• A)Fairness Rule
• B)Business Judgment Rule
• C)Insider Trading Rule
• D)Actual Authority Rule

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Definitions:

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.

Unit Product Cost

The total cost associated with producing one unit of product, including materials, labor, and overhead.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume.

Variable Costing

Accounting practice that integrates only variable cost elements of production (direct materials, direct labor, and variable manufacturing overhead) into the valuation of products.