What is the difference between a derivative action and a direct action regarding shareholder lawsuits

Q: How should the capital market react to (a) the disclosure that a patent infringement suit involving…

A: Capital markets react with information provided by company and share prices of company will change…

Q: Does the rule rendering an insurance contract voidable as a result of concealment apply with equal…

A: Property insurance is a type of insurance coverage that protects real or personal property against…

Q: Investments in equity securities for which the investor has insignificant influence over the…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: A bankruptcy court enters an order for relief. How does this action affect an insolvent company and…

A: Bankruptcy:   Bankruptcy is the elimination of different types of debts. The acceptance of…

Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?

A: A contract is an agreement between more than one person to perform the duties mentioned in the…

Q: When it is appropriate to bring a statutory derivative action (s236)? Draw a flowchart for the steps…

A: Introduction:   Statutory derivative action (s 236) is an action taken against the company or its…

Q: Fair Value (Liabilities) What is Fair Value for a liability? What would be an e.g? Please Explain.

A: The objective of this question is to understand the concept of 'Fair Value' in the context of a…

Q: A bankruptcy case can begin with either a voluntary or an involuntary petition. What is the…

A:

Q: What is one of the drawbacks of the parol evidence rule? It permits the acceptance of extrinsic…

A: First let us discuss what parol evidence rule is. The term parol means extra. This rule comes under…

Q: The duty owed under the mitigation of damages doctrine depends on the nature of the breached…

A: A breach of contract occurs when one party in a binding agreement fails to deliver according to the…

Q: what are some fundamental challenges in accounting and reporting for a noncontrolling interest?

A: In deliberations prior to issuance of SFAS 160 "Non controlling interest in consolidated financial…

Q: To be recorded as a liability, does the obligation have to be absolute?

A: Accounts payable, short-term loans, interest payments, bank overdrafts, and other similar short-term…

Q: A contract that only one of the parties can enforce in a court is not valid. True False

A: An agreement containing various terms and conditions; rights and obligations to perform that are…

Q: Which of the following arises when the seller's right to consideration from a customer is…

A: A receivable is recognized by the entity when the entity's right to consideration is unconditional…

Q: Companies are not required to, but have the option to, value some or all of their financial assets…

A: IFRS 9, deals with Financial Instruments. It provides for measurement and classification of various…

Q: What is a deficiency judgment and how is its value to a lender affected by the Bankruptcy Code?

A: Bankruptcy is filed by a debtor who is unable to repay its creditors. In case a person files for…

Q: Under what circumstances is a contingent liability reflected in the accounting records as though an…

A: Contingent liability: Liability that can occur in future depending on the outcome of an uncertain…

Q: If a contingent liability is probable but estimable only within a range, what amount, if any, should…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Describe the difference between a right of first refusal, an option agreement and a buy-sell…

A: A right of first refusal gives an individual or corporation the contractual right to participate in…