A Director Will Be Criminally Liable Where He

question 1

Multiple Choice

A director will be criminally liable where he

• A) acts as corporate agent to the determent of the corporation.
• B) uses corporate information to make personal profit.
• C) directly competes with the corporation in his own business.
• D) intercepts a corporate opportunity.
• E) gets involved with insider trading.

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Definitions:

Deferred

Accounting term used to describe revenues or expenses that have been incurred but not yet recorded in accordance with accrual accounting principles.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor costs.

Reported Gain

The profit reported on financial statements, reflecting the difference between the sale price of an asset and its book value.

Equity Method

An accounting technique used to record investments in other companies, recognizing income proportional to ownership.