Kelley School Of Business - L201 Final Exam (Mccrory) With 111 Questions And Answers Updated /100% Pass

Compensation Committees {Ans: Review and approve the salaries, bonuses, stock options, and other benefits of high-level corporate executives. => The *Security and Exchange Commission (SEC)* requires independent directors to approve executive compensation}CASE: Drake vs Polyflow {Ans: -Drake Manufacturing entered agreement to sell equipment to Polyflow -Drake sued for breach of contract for not paying for equipment -Polyflow answered that Drake wasn't authorized to bring a suit as a foreign corporation (didn't have a certificate of authority) -Verdict originally in favor of Drake, awarded $271,000 -Polyflow filed JNOV, and was reversed in favor of Polyflow}Ex: Interns put liquor on company's account in past deals, and are well-known at the liquor store. They decide to buy liquor on the company's account for their personal use, and they are caught and fired. If the company never informs the liquor store that the boys are no longer employees, what type of authority would the boys have if they tried to do it again? {Ans: Apparent => the third party never received notice that the boys were no longer agents}Outline the 2 types of authority {Ans: *an agent can bind its principle to a contract/other matters only when the agent has