director liability?
Q: if the shareholders position is not protected by a contract unlike the provider of debt how is it in…
A: A shareholder seems to be a person or organization who holds stock in a corporation. Shareholders…
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A: Capital markets react with information provided by company and share prices of company will change…
Q: Differentiate between voluntary and involuntary liquidation of a company and outline the…
A: Liquidation is the process of getting a business shut down and distributing its assets to claimants.…
Q: What does the phrase "limited liability" mean in a corporate context?
A: Limited liability means owners liability is limited to the invested capital in the firm.
Q: What is ‘corporate liability’. Provide examples to illustrate your answer and refer to legislation…
A: Corporate Liability is vicariously liability where the company liable for the acts of an employees…
Q: What are the possible actions when a business becomes insolvent?
A: Insolvency occurs when a person or business is unable to service the debt to lenders as debts come…
Q: what is the difference between a sole trader , pafrtenership and a company . explain
A: Sole proprietorship in easy words could be a one-person business organization. moreover, a sole…
Q: 1.Discuss why might a director argue reliance as a defence to a breach of duty and care?2.Explain…
A: Share helps in representing the unit of an equity ownership in corporation. Shareholders used to…
Q: What conflicts of interest can arise between managers and stockholders?
A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…
Q: What does “ Shareholders Limited Liability “ Mean ?
A: Shareholders are the persons who own the company and have a right to vote in the event of making…
Q: Explain the statement ‘the purpose of a derivative action is to ensure that minority shareholders…
A: Introduction: A derivative action allows a minority shareholder to bring legal action on behalf of…
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: What does the term insolvent mean?
A: When a person's liabilities exceed the assets owned by him and he is unable to pay the debts which…
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: The dividend is not a legal liability until the board of directors has declared it. true or false.…
A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…
Q: discuss the different instances when there is no duty to disclose in insider trading
A: Answer: Insider trading is the trading of internal information to outside market which is illegal.…
Q: Corporations offer the advantage of limited liability. Explain what is meant by that statement.
A: Corporation: A business concern where there is a separate legal entity, and are owned by…
Q: What does it mean for a company to be a legal person and what does it mean for owners of a company…
A: A company refers to a voluntary association that is formed and organized by a group of people who…
Q: Limited liability is a disadvantage of corporation companys? true or false
A: Limited liability refers to the term that means in case of insolvency of the business, personal…
Q: 1. Which of the following is an essential characteristic for an obligation to qualify as a…
A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Is there an obligation to cease trading when a company is insolvent? If there is not, what are the…
A: Insolvency If the company faces sever financial crunch into the business or face cash shortage into…
Q: A company expected to go bankrupt in the near future is considered to be operating under the…
A: Three fundamental assumptions of accounting are: 1.Going concern assumption 2. Accrual 3.…
Q: If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is…
A: The shareholders have ownership of the company. The providers of debt are the creditors of the…
Q: How Limited liability is different to unlimited liability? Briefly explain with an example of…
A: Limited liability is the type of organization where loss to the corporation will not exceed amount…
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: Explain why a duty to prevent insolvent trading is imposed on directors by statute. Provide an…
A: Financial Accounting Financial accounting is the process of recording financial events, summarizing…
Q: What is a Liability? Describe different types of Liability a company can have with examples.
A: A liability is a responsibility of a company happen due to a past incident done by the company. For…
Q: Under which circumnstances should a company disclose contingent liabilites in the footnotes of the…
A: Note: The answer for question first is given above. For remaining, please post separately. Thanks!…
Q: Can a stockholder exercise his/her appraisal right
A: An appraisal right is the constitutional right of a company's stockholder to have a…
Q: What makes product warranties considered as contingent liabilities? Also, what Generally Accepted…
A: Contingent Liability is a liabilty that may arise in outcome of future uncertain amount.
Q: Does GAAP distinguish between fair values that are readily determinable from a securities exchange…
A: GAAP refers to the accounting principles & rules which are followed by the companies for…
Q: Which of the following is not an essential characteristic of a liability? * O līability is a present…
A: Ans. Liability is an obligation to pay to a person or an entity by any person or entity.
Q: What are the effects on creditors, including secured creditors during voluntary administration?…
A: creditors are those person supply goods or services to the company, provide loan to the company,…
Q: It is and to sell or buy shares of a company on the basis of information not available to the…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: Who is an agent and what are the duties of an agent? How does the principle of vicarious liability…
A: Agent Definition: A person who has been empowered to act on behalf of another person/entity, that…
Q: What does insolvent mean
A: Insolvent is a term that relates to the debtors payment.
Q: The sale and distribution of the assets of a business on its termination is Group of answer choices…
A: Answer is liquidation
Q: How does the public good of accounting information lead to underproduction in a free market?
A: Accounting information is provided to the users in the form of annual Statement which includes…
Q: Insurance companies perform functions that are similar to those of investment companies. * True or…
A: Insurance companies are those companies that have been formed in order to cover the loss of an asset…
Q: The relationship between a banker and its customers are not only fiduciary in nature but contractual…
A: A bank may be a financial organization that's allowed to simply accept deposits and supply loans.…
Q: What is a shareholders' m agreement? What should be included iscussion in the shareholders'…
A: A shareholder, also called a stakeholder, is an individual, business, or organization that owns at…
Q: How does unlimited liability put a business owner atrisk?
A: The liability is the amount due to be paid to the outsiders by the Organizations.
Does trading whilst insolvent automatically equate to a director liability?
– explain your answer
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Solved in 2 steps
- If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director?The dividend is not a legal liability until the board of directors has declared it. true or false. Explain why?Is there an obligation to cease trading when a company is insolvent? If there is not, what are the circumstances under which a company can continue to trade?
- What are the possible actions when a business becomes insolvent?Which of the following is an example of protective rights? Rights to appoint or remove another entity that directs the relevant activities The right of a party holding a non-controlling interest in an investee to approve the issue of equity or debt instruments Rights to veto any changes for the benefit of the investor All of the choicesEthical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock legally,thereby becoming a part owner of the company, shouldmanagement be allowed to entrench itself against thewishes of this owner? Explain your answer.
- How Limited liability is different to unlimited liability? Briefly explain with an example of businesses.What does “ Shareholders Limited Liability “ Mean ?What statutory protection is offered to a third party who enters into a contract with a person purporting to act on behalf of a company which is not yet formed? What are bonus shares? Why may a company wish to reduce its Share Capital?
- Why are most decision makers particularly concerned about the amount of current liabilities reported by a company?What term is used to refer to denote that creditors usually may not go beyond the assets of the corporation to satisfy their claims? Group of answer choices unlimited liability limited liability double taxation mutualQuestion: in an unlimited liability company, the shareholders are only liable to pay up to the amount they have agreed. Required: state whether the above information is true or false.
