The President of a Company Has Paid Himself a Large

question 44

Short Answer

The president of a company has paid himself a large salary, a handsome bonus, received a large number of lucrative stock options, and hired his family members at high salaries. The president is probably guilty of
collusion.
improper financial management.
cheque kiting.
misrepresentation of finances.
insider trading.

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Definitions:

Transferred

Moved or shifted from one place, person, or entity to another.

Claim in Recoupment

A legal claim made by a defendant in a lawsuit to offset or reduce the amount of damages claimed by the plaintiff, based on related transactions.

Instrument

In legal and financial contexts, a formal document, such as a contract, will, or security, that has a legal effect or is meant to convey rights or obligations.

Original Payee

The initial recipient to whom a financial instrument, such as a check or promissory note, is made payable.