Which of the Following Would Be Likely to Result in Liability

question 82

Multiple Choice

Which of the following would be likely to result in liability to a director of a textile company? The director:

• A) sells stock in the textile company before a merger is announced.
• B) buys stock in the textile company using the computer in the office of the company.
• C) owns stock in an automobile company.
• D) agrees to hire as president a man he has not personally investigated.

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Definitions:

Cash Receipts

The collection of money, typically in the form of cash or checks, received by a business.

Electronic Cash Registers

Machines or systems used at retail checkout points to calculate and record sales transactions, accept payments, and store cash.

Designated Personnel

Individuals who are specifically chosen or assigned to carry out particular tasks or responsibilities.

Cash Receipts

The actual money received during a given period, including all forms of payment such as cash, checks, and credit card payments.