Frank Is a Controlling Shareholder in E-Prise,Inc.Frank

question 30

Multiple Choice

Frank is a controlling shareholder in E-prise,Inc.Frank:

• A) may not enter into unfair business transactions with the corporation.
• B) has a fiduciary duty to minority shareholders.
• C) may not exclude minority shareholders from beneficial arrangements involving stock.
• D) All of the above are correct.

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Definitions:

Planning Budget

A budget created at the beginning of the budgeting period that is valid for a planned level of activity.

Fixed Cost

A cost that does not change with the level of production or sales volume, remaining constant even when output varies.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company, making it more adaptable than a static budget.

Revenue

The total amount of money received by a company from its business activities, like sales of goods or services.