Emma Is a Director of Fab Styles Corporation

question 15

Multiple Choice

Emma is a director of Fab Styles Corporation. Without informing Fab,Emma goes into business with GR8 Trends,Inc.,in competition with Fab. Emma is li-able for breach of

• A)none of the choices.
• B)the business judgment rule.
• C)the duty of care.
• D)the duty of loyalty.

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Definitions:

Beginning Work in Process

The inventory of production that has started but is not completed at the beginning of an accounting period.

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Manufacturing Activities

Processes and operations involved in converting raw materials into finished goods, including assembly, fabrication, and machining.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased or distributed to customers.