Smith was an officer of CCC Corp. As an officer, the business judgment rule applied to Smith in which of the following ways?
A. Because Smith is not a director, the rule does not apply.
B. If Smith makes, in good faith, a serious but honest mistake in judgment, Smith is generally not liable to CCC for damages caused.
C. If Smith makes, in good faith, a serious but honest mistake in judgment, Smith is generally liable to CCC for damages caused, but CCC may elect to reimburse Smith for any damages Smith paid.
D. If Smith makes, in good faith, a serious but honest mistake in judgment, Smith is generally liable to CCC for damages caused, and CCC is prohibited from reimbursing Smith for any damages Smith paid.
Answer: B. If Smith makes, in good faith, a serious but honest mistake in judgment, Smith is generally not liable to CCC for damages caused.
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A retail business has a percentage lease based on 5% of gross income of up to $25,000 per month and 21?2% of gross income above that amount. The minimum to be paid is $1,000 per month. For a month in which the business has a gross income of $47,000, what will be the rent payment?
a. $1,800 b. $4,675 c. $2,800 d. $3,675
The manufacturing cycle occurs at the
A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.