Joe Helquist and Samantha Gillis Were Partners in the Operation

question 15

Multiple Choice

Joe Helquist and Samantha Gillis were partners in the operation of an office supply business for 32 years.Joe had always handled suppliers and Samantha was responsible for running the store and managing employees.Joe decided to retire and Samantha gave him a fine retirement dinner.Joe had some financial setbacks shortly after retirement when his wife became ill and two of his children decided to go on for their masters' degrees.Joe began ordering supplies from the usual suppliers since they were not aware of his retirement.Joe would intercept the supplies at the loading dock and then sell them on his own.Samantha soon caught the discrepancy in the bills and her inventory and refused to pay the suppliers when she learned of Joe's scheme.Which of the following statements is correct?

• A)Samantha is not liable to the suppliers since Joe's authority terminated.
• B)Samantha is not liable to the suppliers because Joe's acts constituted fraud.
• C)Samantha is liable to the suppliers.
• D)none of the above

Understand corporate governance structures, including the role of the board of directors and the audit committee.

Recognize the rights of shareholders in meetings, derivative suits, and the enforcement of claims.

Understand the concept of fiduciary duties and the business judgment rule as it applies to corporate governance.

Comprehend the mechanisms for shareholder meetings and the role of shareholders in calling these meetings.

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Definitions:

M2

A measure of the money supply that includes cash and checking deposits as well as near money that can be easily converted to cash, like savings deposits, money market securities, and mutual funds.

M3

An indicator of the total money supply encompassing M2—which consists of cash, checking deposits, and readily convertible near money—along with substantial time deposits, institutional money market funds, and additional significant liquid assets.

M1

A segment of the money supply encompassing all tangible forms of money such as bills and coins, alongside demand deposits and additional liquid assets maintained by the central bank.

Demand for Money Schedule

A representation of the relationship between the quantity of money people wish to hold and the interest rate, other factors being constant.