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corporation At the very least, the director must keep informed regarding the corporation s operations, although he or she may in most circumstances rely on the input of experts hired by the corporation, such as its attorneys and accountants Thus, when the widow of a corporation s founder accepted a seat on the board as a symbolic gesture of respect to her late husband, she found herself liable to minority stockholders for the misbehavior of her fellow board members Nonparticipation in the misdeeds was not enough to exempt her from liability; she had failed to keep herself informed and exercise independent judgment Directors may also find themselves sued personally by minority stockholders or creditors of the corporation for declaration of dividends or other distributions to stockholders that render the corporation insolvent or for other decisions of the board that have injured the corporation.

Wiley IFRS: Practical Implementation Guide and Workbook financial statements were authorized for issue. Slow Build Inc. incurred the extra costs for the variation in year 3. Required Provide Slow Build Inc. s income statement and the amounts that should be presented in the balance sheet for each of the years 1, 2, 3 and 4. Solution Income statement

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Notwithstanding such lawsuits, however, directors are not guarantors of the success of the corporation s endeavors; they are required only to have used their best independent business judgment in making their decisions When individual directors cannot be totally disinterested (such as the corporate opportunity issue or when the corporation is being asked to contract with a director or an entity in which a director has an interest), the interested director is required to disclose her or his interest and is disqualified from voting In many states, the director s presence will not even count for the maintenance of a quorum Apart from the question of the interested director, much of the modern debate on the role of the corporate director has focused around which constituencies a director may take into account when exercising his or her best business judgment.

Conditional numbers Let s look at conditional numbers because knowing how to get conditional numbers will help with getting conditional strings. Let's say that you want to return the number 2 if $test is true and the number 5 if $test is false. Here, you can use the fact that converting Boolean true to a number gives the value 1 whereas converting Boolean false to a number gives the value 0, so you just need a mathematical formula that converts 0 to 5 and 1 to 2:

Risk ID: A unique identifier. WBS: WBS number of the task(s) related to this risk. Rank: How important is this risk relative to others Rank with 1 = highest. No risks have the same rank. Date found: Date risk became known. mm/dd/yy. Assigned to: Person who is assigned to manage this risk. Description: High-level description of risk event, impact, and probability. Strategy: What will be done to reduce the probability, impact, or both Status: Ongoing log of changes to risk, in order from most recent to oldest. Format: mm/dd/yy action/update. Closeout date: When did the risk probability go to zero Describe in the final status. Remove any rank from this risk.

The traditional view has been that the director s only concern is to maximize return on the investment of the stockholders More recently, especially in the context of hostile takeovers, directors have been allowed to take into account the effect of their decisions on other constituencies, such as suppliers, neighboring communities, customers, and employees In an early case on this subject, the board of directors of the corporation which owned Wrigley Field and the Chicago Cubs baseball team was judged to have appropriately considered the effect on its neighbors and on the game of baseball in voting to forgo the extra revenue that it would probably have earned if it had installed lights for night games.

Many campus internetworks use multiple routing protocols, perhaps because of the merger of departments or companies that were once separate. Also, multiple routing protocols often make sense because the criteria for selecting protocols are different for different parts of an internetwork. Simple

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When the stockholders believe the directors have not been exercising their best independent business judgment in a particular instance, the normal procedure is to make a demand on the directors to correct the decision either by reversing it or by reimbursing the corporation from their personal funds Should the board refuse (as it most likely will), the stockholders then bring a derivative suit against the board on behalf of the corporation They are, in effect, taking over the board s authority to decide whether such a suit should be brought in the corporation s name The board s vote not to institute the suit is not likely to be upheld on the basis of the business judgment rule, since the board members are clearly interested in the outcome of the vote.

Figure 10-2

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