When the Profits of Emm Corp

question 49

True/False

When the profits of Emm Corp. rose steadily over two quarters three years back, the employees of the company were given the offer of purchasing the company's shares at subsidized rates. Many of the employees who bought the shares have become extremely rich after the phenomenal growth Emm Corp. has had in the following years. This is an example of a bonus.

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Definitions:

Good Faith

An honest intention to act without taking an unfair advantage over another party.

Limit Liability

A legal principle or provision that caps the amount one can be held responsible for in case of damage or loss.

Stop-payment Order

A request made to a bank by an account holder not to pay a check or transaction previously authorized.

Negligence

The failure to take reasonable care to prevent harm to others that a reasonably prudent person would have taken under the same circumstances.