Reference no: EM132214139

1. Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes.

True

False

2. What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

a. Conventional

b. Channel

c. Consumer

d. Integrative

e. Product

3. Decision making situations that include which of the following characteristics require a Preference Matrix? approach?

A. multiple criteria cannot be merged into a single measure

B. ?manager's opinions are not important to the decision

C. the total cost of each decision must be found

D. the best decision depends on some unknown outcome

4. Fresh Fish, Inc. owned ninety-five percent of the shares of its subsidiary corporation Polly's Aquatic Friends, Inc. The board of directors of Fresh decided to merge Polly's with Fresh. The board did not consult the shareholders of either company before the merger. If a shareholder tried to challenge the merger, how would a court most likely rule?

a. A court would likely hold that Fresh could merge with Polly's without shareholder approval because it owned more than ninety percent of the outstanding shares of Polly's.

b. A court would likely hold that Fresh could not merge with Polly's without at least thirty percent approval by shareholders from both corporations.

c. A court would likely hold that Fresh could not merge with Polly's without one hundred percent approval by shareholders from Fresh.

d. A court would likely hold that Fresh could not merge with Polly's without one hundred percent approval by shareholders from Polly's.

5. Two brothers, Albert and Raymond Martin, each owned 50 percent of the stock in Martin's News Service, Inc. Albert and Raymond had difficulty working together and communicated only through their accountant. For ten years, there were no corporate meetings, no elections to the board of directors, and no observation of other corporate formalities. During that time, Raymond operated the business much as a sole proprietorship, failing to consult Albert on any matter and making all of the decisions himself. The corporation, however, was a viable concern that had grown successfully through the years. Albert filed a lawsuit seeking to have the corporation dissolved.

How would a court most likely rule in this case?

a. The court most likely refused to dissolve the corporation, because there was no shareholder agreement to dissolve the corporation.

b. The court most likely dissolved the corporation, because the shareholders had been deadlocked for over ten years, during which time none of the corporate formalities had been observed.

c. The court most likely refused to dissolve the corporation, because dissension between the shareholders is not a sufficient basis on which a court can order dissolution.

d. The court most likely dissolved the corporation, because Albert, as a 50 percent shareholder-owner of the corporation, was entitled to have the corporation dissolved regardless of the circumstances.