Fact Pattern 41-3A (Questions A19-A20 Apply)

question 17

Multiple Choice

Fact Pattern 41-3A (Questions A19-A20 apply)
Atlantic Corporation's articles of incorporation prohibit a sale of its assets with?out a vote of the board of directors.Atlantic's officers sell some assets to Pacific Company without notice to the board.The officers also fail to pay Atlantic's taxes on time,and some Atlantic funds are not accounted for.
-Refer to Fact Pattern 41-3A.The appropriate remedy is most likely

• A)a sale of the rest of Atlantic's assets to its directors and shareholders.
• B)Atlantic's consolidation or merger with Pacific.
• C)Atlantic's dissolution.
• D)payment of damages to Atlantic's officers.

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Definitions:

T-Accounts

A tool used in accounting to represent general ledger accounts, showing debits on the left side and credits on the right side.

Finished Goods

Inventory items that are completed and ready for sale.

Raw Materials

The basic materials and substances used in the initial stages of production.

Schedule of Cost

A detailed report listing all costs associated with a project, including direct, indirect, fixed, and variable costs.