QuickHelper

(10)

$20/per page/

About QuickHelper

Levels Tought:
Elementary,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Business & Finance,Chemistry,Engineering,Health & Medical Hide all
Teaching Since: May 2017
Last Sign in: 363 Weeks Ago, 1 Day Ago
Questions Answered: 20103
Tutorials Posted: 20155

Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Management Posted 05 Oct 2017 My Price 7.00

Basic Products Corp. has five directors on its board.

Basic Products Corp. has five directors on its board.  Basic owned vacant land that it had purchased several years ago as the site for a new factory.  Basic no longer planned to build a factory on that land.  The directors of Basic asked the corporation President to obtain an appraisal of the property.  The president obtained the appraisal from a qualified appraiser, who appraised the property for $50,000.  At a board meeting, the directors reviewed the appraisal and voted 5-0 to sell the property.  Susan, Basic's vice president of marketing, was present at the meeting and told the directors that she was interested in purchasing the land for the $50,000 appraised value, noting that Basic would not need to pay a commission to a real estate broker, which would net more money for Basic.  The board agreed and voted 5-0 to sell the land to Susan.

The sale to Susan was completed and the sale was mentioned in Basic's next shareholder meeting.  Brice, a shareholder, believed that the property was worth more than $50,000 and sued the directors for breach of their duty of due care. 

Explain how the court would determine if the directors satisfied their duty of due care, including a discussion of how the business judgment rule may apply.

Answers

(10)
Status NEW Posted 05 Oct 2017 04:10 PM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)