Prophet Inc Has Existed for Several Years

question 27

Multiple Choice

Prophet Inc has existed for several years.Delilah is a director,Suki is a shareholder,and Odessa is an officer.Which of the following statements is most likely to be TRUE?

• A)Suki owes a duty of care to Delilah.
• B)Odessa owes a fiduciary duty to Suki.
• C)Delilah and Odessa owe a fiduciary duty to Prophet Inc.
• D)Prophet Inc owes a duty of care to Suki.
• E)Odessa owes a contractual duty of utmost good faith to Delilah.

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Definitions:

Product Cost

The total cost associated with making or acquiring a product, including materials, labor, and overhead costs.

Variable Cost

Costs that change in proportion to the level of production or business activity.

Markup Percentage

The percentage increase between the cost to produce or purchase a product and its selling price.

Product Cost Concept

An accounting approach that includes costs directly associated with manufacturing a product, including raw materials, labor, and overhead expenses.