The Reasons That Directors and Senior Officers Need to Be

question 44

Multiple Choice

The reasons that directors and senior officers need to be held personally liable for the crimes committed by a corporation include all EXCEPT:

• A) Some closely held corporations are run by shrewd crooks trying to hide behind the corporate veil.
• B) Some corporations would view a fine as simply a "license" to do it again.
• C) Some corporations are but a "shell", so when faced with a large fine simply go out of business and reorganize into another corporation.
• D) This is an effective deterrent against corporate crime.
• E) Criminal acts have corporate liability limitations as outlined in the CBCA.

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Definitions:

Goods And Services

Physical items that satisfy human wants (goods) and intangible benefits provided to consumers (services).

Barter

The direct exchange of goods and services without the use of money as a medium.

Rates Of Exchange

The value of one currency for the purpose of conversion to another.

Barter System

An exchange system in which goods or services are directly exchanged for other goods or services without the use of money.