Where Y Is GDP, C Is Consumption, I Is Investment

question 61

Multiple Choice

Where Y is GDP, C is consumption, I is investment, (G ) is government spending, (T ) is net taxes, and there is no international trade, the government budget deficit equals:

• A)T - G.
• B)Y - G.
• C)Y + T - G.
• D)G  - T.

Understand the roles and responsibilities of corporate directors and officers, including the duty of care and the duty of loyalty.

Recognize circumstances that could lead to breaches of corporate duties by directors and officers and the potential legal consequences.

Identify the rights and protections available to directors and officers, such as indemnification and the business judgment rule.

Analyze the legal implications of corporate governance decisions, including hiring practices, breach of contracts, and negligence.

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Definitions:

UPA

Uniform Partnership Act; a set of laws adopted by many states in the U.S. that governs the operations of partnerships and the relationships between partners.

Expressly Agree

To give a clear and definite agreement or consent to a specific term or condition.

Liquidation

In regard to corporations, the process by which corporate assets are converted into cash and distributed among creditors and shareholders according to specific rules of preference. In regard to bankruptcy, a proceeding under Chapter 7 of the Bankruptcy Code, often referred to as ordinary or straight bankruptcy, in which a debtor states his or her debts and turns all nonexempt assets over to a trustee, who sells the nonexempt assets and distributes the proceeds to creditors. With certain exceptions, the remaining debts are then discharged, and the debtor is relieved of the obligation to pay the debts.

Dissolution

The process of legally terminating the existence of an entity such as a corporation or partnership.