A director’s duty to avoid a conflict of interest includes: Select one: a. Not making a personal profit from an opportunity arising from their office b. Not taking up an opportunity that belongs to the company c. Not using his or her position for private gain d. All of the above

A director’s duty to avoid a conflict of interest includes: Select one: a. Not making a personal profit from an opportunity arising from their office b. Not taking up an opportunity that belongs to the company c. Not using his or her position for private gain d. All of the above

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter5: Corporate Ethical Governance & Accountabililty

Section: Chapter Questions

Problem 7Q

See similar textbooks

Related questions

Q: an agency relationship can degenerate into an agency conflict when an agent acts in a manner that is…

A: The question is based on the concept of agency problem , which is a conflict between shareholder and…

Q: Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the…

A: Senior executives of the companies are responsible for their work and contribution to the companies.…

Q: After dissolution caused by the illegal acts, fraud, corruption and etc. of the directors, trustees,…

A: Dissolution of a company is known as the process were the existing company is shut down by force of…

Q: Which of the following would be considered a self-interest threat? When a member of the assurance…

A: Self-interest threat: Self-interest threat refers to a situation in which a member will act in a way…

Q: Which of the following circumstances may create self-interest threats for members: a) holding a…

A: For professional accountants, some situation may cause self interest threats. It means they are…

Q: Enron's directors realized that Enron's conflict of interests policy would be violated by Fastow's…

A: The entities or vehicles which have been designed or developed especially for certain specific…

Q: Which one is false? A. The agency is defined as a relationship by consent between two parties,…

A: Managers are the people appointed by the firm for managing its day-to-day business operations.…

Q: Inadequacies can be linked to the public and private sectors' incapacity to govern effectively.…

A: In the given question we need to tell that whether the given statement is true or false. Statement:-…

Q: 1.Which of the following situations could be evidence that the investor lacks the capacity to…

A: Answer: To exercise significance control over the other company the investor is required to hold…

Q: Mr. Bader is leaving the accounting practice to become the Finance Director of a client company. The…

A: The principles of the code of ethics are: Objectivity Integrity Confidentiality Professional…

Q: A shareholder will succeed on a derivative suit if a director does not violate the business judgment…

A: A business judgment rule is that the decisions made by directors are taken after considering the…

Q: Under the AICPA Code of Professional Conduct, which of the following rules is not applicable to CPAs…

A: AICPA (American Institute of Certified Public Accountants) code of professional conduct sets rules,…

Q: Unethical acts are generally committed by unethical people. What are some things companies can do to…

A: The companies can ensure the ethical behavior of the employees by: Creating a code of ethics,…

Q: 1. Why are employees inside stakeholders but (workers) unions classified as outside stakeholders? 2.…

A: I have attempted the first three question as per our rules.

Q: Are poison-pill defenses ethical? If a potential acquirer buys company stock legally, thereby…

A: The word poison pill refers to a defensive technique used by a target firm to prevent or deter an…

Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…

A: While taking business decisions, business ethics play an important role. Business ethics means right…

Q: There is a conflict of interest between stockholders and managers. In theory, stockholders are…

A: Agency problem occurs when there is conflict of interest between the agent (management) and the…

Q: Performing tasks for which an accountant is not competent is unethical’

Q: A court does not have the power to remove a director when: Multiple Choice petitioned by…

A: Shareholders have the right to remove the directors without going to the court and they do not…

Q: In a public corporation, the agency conflict is: O the exploitation of the workers by the owners the…

A: Agency Conflict refers to Conflict between the agents and owners of the company Agents refers to…

Q: (a) Who are the stakeholders in this situation? (b) Are the president's motives and actions ethical?…

A: Ethics: Ethics in business is a much debated yet less followed topic. Every business has to…

Q: Why do S Corporation owner/employees generally prefer to pay themselves a low salary for services…

A: S corporation is a type of corporation which pays lower corporate taxes in comparison to other…

Q: Neutrality of information means that the information is a. Not in favour of any of the employees b.…

A: Accounting information is information related to financial statements like income statement, balance…

Q: Having inaccurate financial statements that can harm society would correspond with the ethical…

A: Financial statement: The income statement, cash flow statement, and balance sheet. Footnotes on…

Q: The general management of the client have a history of corporate tax avoidance and violating listing…

A: In case of fraud there are two type that include the miss appropriation of assets and fraud…

Q: How might an accounting firm influence whether non–tax practitioners view a contentious issue with a…

Q: nternal control does not consist of policies and procedures that Select one: a. Ensure that business…

A: Internal controls are the procedure that are implemented by an entity to ensure that the financial…

Q: What is the term for an employee who detects and tries to put an end to a company's unethical,…

A: The question is related to multiple choice question.

Q: Which of the following circumstances may create intimidation threats? a) Threat of dismissal or…

A: Please see the next step for the solution

Q: Agency problem arises due to the divergence or divorce of interest between the principal and the…

A: Since the principals rely on agents to complete some transactions, there is disagreement over…

Q: Which of the following is incorrect: Options: a) The Market for Corporate Control is an…

A: Correct: a) The market of corporate control is one of the key factors for the shareholders and…

Q: When the existing accountant doesn't reply to the proposed professional accountant after a…

A: r) Ans. True As per the rules of their professional body to inform you of any circumstances of which…

Q: Independent directors are the agent and trustee of the company, their duties and responsibility…

A: Corporate governance is the way in which the company is operated and it is controlled. It is about…

Q: Why the corporate social responsibility activities have negative implication on the accounting…

A: The costs paid to do CSR activities are basically expensed from the company money. In the short…

Q: Two important issues in corporate governance are (1) the rules that cover the board's ability to…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: General Ethics. Is there any moral difference between a disapproved action in which youare caught…

A: Morality is indispensable for any and everything throughout everyday life. Be it the relationship…

Q: Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a…

A: The problem or conflict of the entity occurs as a result of conflict between two parties, principal…

Q: What is the possible agency conflict between inside owner/managers andoutside shareholders?

A: Agency conflict: The conflict of interest of two parties one which is the principal and other which…

Q: Many financial managers and corporate officers are often criticized for (a) poor decisions, (b) lack…

A: As your business grows, you'll move from a flat structure structure, or one wherever many key…

Q: Which of the following does not help align managerial and shareholder incentives? Question options:…

A: Antitrust law: This law is created for the purpose of saving the customers in case of a monopoly.…

Q: Do you agree or disagree, "some companies only use Corporate Social Responsibility for them to gain…

A: Company social responsibility: It is the modern practice adopted by the management to integrate…

Q: Is a rule of Contra Proferentum defensible in today’s business environment? Explain with example

A: Meaning: It is a legal doctrine in contract law which states that any clause considered to be…

Q: Tax accountants are expected to Group of answer choices refuse to go along with clients who claim…

A: Tax accountants are entrusted with the task of assisting the business entities with regards to…

Q: The duty to retain discretion means that: Select one: a. The director should remain independent,…

A: The company will consists of the owners, and management. The owners are the persons who take care of…

Q: Which among the following is not an objective of Whistleblowing? a. To protect Public Interest b. To…

A: Whistleblowing is a process of making policies which helps in reduction of corruption practices and…

Q: Corporate social responsibility goes beyond serving the stakeholders of a company. * TRUE FALSE

A: ANSWER ÷ True corporate social responsibility goes beyond serving the stakeholders of a company is…

Q: A company's financial management and stockholders might be harmed by their overconfidence.

A: Introduction: The corporation may either sell its equity shares to the public or purchase them on…

Q: The following are lessons (from previous derivative mishaps) for non-financial corporations except…

A: Answer is option 4. The following are lessons (from previous derivative mishaps) for non-financial…

Question

A director’s duty to avoid a conflict of interest includes:
Select one:
a. Not making a personal profit from an opportunity arising from their office
b. Not taking up an opportunity that belongs to the company
c. Not using his or her position for private gain
d. All of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Monitoring By the Board of Directors and Others

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.

Similar questions

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work. Group of answer choices True False
what happens when director is being irresponsible in the company?
General Ethics. Is there any moral difference between a disapproved action in which youare caught and the same action that never becomes known to anyone else? Do many persons in business and professional society make a distinction between these two circumstances? If you respond that you do (or do not) perceive a difference while persons inbusiness and professional society do not (or do), how do you explain the differences inattitudes?
A court does not have the power to remove a director when: Multiple Choice petitioned by shareholders. it finds that the director engaged in fraudulent conduct. it finds that the director intentionally inflicted harm on the corporation. it believes removal would help the corporation operate more globally responsibly.
Unethical acts are generally committed by unethical people. What are some things companies can do to help ensure that their employees act ethically?
A corporation whose managers are separate from its owners will face zero agency costs when it uses stock options as part of its compensation package for upper managers True False
Agency conflicts between managers and shareholders Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a manner that is not in the best interest of his or her principal. In large corporations, these conflicts most frequently involve the enrichment of the firm’s executives or managers (in the form of money and perquisites or power and prestige) at the expense of the company’s shareholders. This usurping and reallocation of shareholder wealth is most likely to occur when shareholders do not have sufficient information about the decisions and actions being made by the firm’s management. Consider the following scenario and determine whether an agency conflict exists: Michael and Primalia equally own and manage A New Beginning (ANB), a store that sells preowned clothing and furniture. Michael is responsible for ANB’s back-office activities, and Primalia staffs the store and makes deliveries to customers. Both have equal decision-making…
Explain the statement ‘the purpose of a derivative action is to ensure that minority shareholders are protected from managerial abuse.’ Discuss this issue and any problems which may impede a shareholder from bringing a derivative action.
Please answer in detail Explain the purposes of showing more or less profits by the fraudulent director.
Controversy tends to surround the topic of whistleblowers. For example, should they be considered heroes or traitors? Many pro-whistleblowing policies have been enacted by the federal government to allow these individuals to reap significant monetary rewards for coming forward and giving information about behaviors and actions such as corporate fraud and unethical deeds. Many corporate whistleblowers face negative consequences of their actions, such as reassignment, revenge, and hate crimes, and are seen as traitors (e.g., Edward Snowden and Gina Gray). Yet Sherron Watkins and Cynthia Cooper were celebrated as heroes. Look up the stories of Sherron Watkins and Cynthia Cooper. Why do you think that some whistleblowers are vilified and others made to be heroes?
The duty to retain discretion means that:Select one:a. The director should remain independent, freely exercising their powers in the company’s best interestsb. The director should disclose any material personal interest to the board of directorsc. The director should stay away from board meetings when they have a material personal interest in a matter to be discussed at the meetingd. The director should not disclose any material personal interest to the board of directors