Fact Pattern 24-1

question 39

Multiple Choice

Fact Pattern 24-1
Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its timber operation. In the course of his employment, Niles disposes of the operation’s waste illegally. Orson is a Mountaintop shareholder.


-Refer to Fact Pattern 24-1.Liability for Niles's act most likely rests with Orson to

• A)no extent.
• B)the proportionate extent of the number of shares Orson owns.
• C)the amount of Orson's investment in the firm.
• D)the full extent.

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Definitions:

Nontaxpayers

Individuals or entities that do not contribute to tax revenues, either because of low income, exemptions, or evasion.

Economic Incentive

A financial or non-financial reward used to motivate individuals or entities to pursue particular actions that align with economic goals or policies.

Cost-benefit Analysis

A methodical strategy for evaluating the advantages and disadvantages of different options to identify the most effective method to realize benefits while ensuring cost savings.

Government

The organization or system through which a community or nation is managed and regulated.