Mark is the treasurer of Sky-Hi-Tech Corporation and, as such, he is responsible for protecting
he assets of the corporation. One of Mark's subordinates, Jill, is in charge of reconciling the
monthly corporate bank statements.
Over a period of several months, Jill embezzles a large
amount of money from Sky-Hi-Tech, covering up the theft using her bank reconciliations. If
Mark had adequately supervised Jill, she could not have embezzled this money. Mark's actions
(or inactions) constitute a breach of his duty of:
A) Loyalty.
B) Obedience.
C) Ultra vires.
D) Due care.
E) This is not a violation of any duty due to the business judgment rule.
D
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Which of the following is considered a fiscal year?
A) six months B) three months C) twelve months D) four months
The legitimacy of zoning laws rests upon:
A: The fact that planning boards are local, and thus close to the people they regulate; B: The established right of police power of government; C: The ease of enforcing them; D: The fact that their enforcement does not interfere with interstate commerce.