Which of the Following Is a False Statement Regarding the Liability

question 78

Multiple Choice

Which of the following is a false statement regarding the liability of directors and officers for criminal behavior?

• A)Directors and officers can be held personally responsible for their own crimes.
• B)Directors and officers can be held personally responsible for the crimes of other employees within the organization when they have failed to adequately supervise the employee's behavior.
• C)An officer can be held criminally liable for the illegal conduct of an employee if the court determines that a responsible person would have known about and could have prevented the illegal activity.
• D)Directors and officers who use insider information to trade their corporation's stock for a profit can be held liable for breaching their fiduciary duty.
• E)According to the responsible person doctrine,a court may not find a corporate officer criminally liable for the illegal conduct of an employee unless the officer profited personally from the illegal activity.

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Definitions:

Widgets

A generic term often used to refer to any product or manufactured good.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded at the market equilibrium price.

Demand

The amount of a product or service that buyers are ready and able to buy at different prices over a specified time frame.

Supply

The total amount of a specific good or service available for purchase at any given time.