Mark Is the Treasurer of Sky-Hi-Tech Corporation And,as Such,he Is

question 81

Multiple Choice

Mark is the treasurer of Sky-Hi-Tech Corporation and,as such,he is responsible for protecting the assets of the corporation.One of Mark's subordinates,Jill,is in charge of reconciling the monthly corporate bank statements.Over a period of several months,Jill embezzles a large amount of money from Sky-Hi-Tech,covering up the theft using her bank reconciliations.If Mark had adequately supervised Jill,she could not have embezzled this money.Mark's actions (or inactions) constitute a breach of his duty of:

• A) obedience
• B) due care
• C) loyalty
• D) ultra vires
• E) This is not a violation of any duty due to the business judgment rule.

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Definitions:

Corporate Taxation

The tax levied by governments on the profits earned by corporations, affecting their net income and financial decisions.

Monopolist

A single seller in a market with no close substitutes for the product, giving the seller considerable control over prices.

Capital Owners

Individuals or entities that own assets used for the production of goods or services, which may include physical capital, financial capital, or intellectual property.

Excess Burden

The economic loss that society suffers as a result of taxes or subsidies that distort market decisions.