Alan,Bob,Charles,David,and Edward Are the Only Shareholders of Harbin Corporation

question 20

Essay

Alan,Bob,Charles,David,and Edward are the only shareholders of Harbin Corporation.It is a close corporation.Each owns 20 percent of the shares.There are five director positions and each serves as a director.One day the other four find out that Edward has committed a serious crime.They decide that they wish to expel him from the corporation.What action may the others take? Discuss.

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Definitions:

Inventory

Items such as raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the ordinary course of business.

Inventory Management

The systematic approach to ordering, storing, and using a company's inventory, including raw materials, components, and finished products.

Price Declines

A reduction in the market price of goods, services, or securities.

Physical Inventory

The process of counting all physical merchandise or stock in a store or warehouse to verify records and ensure accuracy in financial accounting.