Which of the Following Is True Regarding Corporate Executives Being

question 5

Multiple Choice

Which of the following is true regarding corporate executives being held personally liable for business crime under the "responsible corporate officer" doctrine?

• A) A corporate executive may never be held personally liable for a business crime.
• B) Corporate executives may only be held personally liable for a business crime if they benefited personally from their actions in executing the business crime.
• C) Corporate executives may be found personally liable for a business crime even if they did not engage in, direct, or know about a specific criminal violation.
• D) A court may not assess criminal liability on a corporate executive unless the executive directly engaged in the specific criminal violation.
• E) Criminal liability may not be assessed against a corporate executive unless the executive directly engaged in the criminal activity and also profited directly and personally from the criminal activity.

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Definitions:

Cost of Goods Sold

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

Receivables Balance

Receivables balance refers to the total amount of money owed to a company by its customers for goods or services delivered on credit.

Accounts Receivable Period

The standard timeframe a company needs to gather owed payments from its customers.

Sales

The transactions involving the exchange of goods or services for money, representing the major source of revenue for a business.