A Corporate Director (member of the Board of Directors) for a large shipbuilding company, is approached by Universal Studios. Like Disney, Universal Studios would like to have a cruise line. The shipbuilding company does not make cruise ships, though they do make ocean liners that could probably be converted. The Director is friends with several members of another shipbuilding company and suggests that they could spin-off to start making cruise ships for Universal. Which violation of his duty to the Corporation is this? A group of answer choices selects one
A Corporate Director (member of the Board of Directors) for a large shipbuilding company, is approached by Universal Studios. Like Disney, Universal Studios would like to have a cruise line. The shipbuilding company does not make cruise ships, though they do make ocean liners that could probably be converted. The Director is friends with several members of another shipbuilding company and suggests that they could spin-off to start making cruise ships for Universal. Which violation of his duty to the Corporation is this? A group of answer choices selects one
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A Corporate Director (member of the Board of Directors) for a large shipbuilding company, is approached by Universal Studios. Like Disney, Universal Studios would like to have a cruise line. The shipbuilding company does not make cruise ships, though they do make ocean liners that could probably be converted. The Director is friends with several members of another shipbuilding company and suggests that they could spin-off to start making cruise ships for Universal. Which violation of his duty to the Corporation is this?
A group of answer choices selects one
A. He was Acting Outside of Authority
B. He breached his duty to not self-deal
C. He usurped a corporate opportunity
D. He did not violate his corporate duty, because the shipbuilding company he is a director of did not make cruise ships
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education