Fact Pattern 11-1

question 67

Multiple Choice

Fact Pattern 11-1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.


-Refer to Fact Pattern 11-1.Neil's performance is most likely

• A)a material breach.
• B)a minor breach.
• C)Mutual's breach.
• D)no breach.

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Definitions:

Programmed Decisions

Routine decisions made using standard operating procedures or rules in an organization's day-to-day operations.

Nonprogrammed Decisions

These are unique and non-recurring decisions that require a custom solution.

Routine Problems

Standard or frequently encountered issues that can usually be addressed through known solutions or procedures.

Unique Problems

Distinctive or specific issues that are not common or general, often requiring tailored solutions.