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Max is a food critic who has just dined at Sam's Steakhouse. Once home, he consults his notes and writes an initial version of his review. The next morning, he plans to reassess his key ideas and make changes to strengthen the piece of writing.Max is at which stage of the writing process in the morning?a.)Draftingb.)Draft revision/rewritingc.)Editingd.)Brainstorming

Question

Max is a food critic who has just dined at Sam's Steakhouse. Once home, he consults his notes and writes an initial version of his review. The next morning, he plans to reassess his key ideas and make changes to strengthen the piece of writing.Max is at which stage of the writing process in the morning?a.)Draftingb.)Draft revision/rewritingc.)Editingd.)Brainstorming

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Solution

b.) Draft revision/rewriting

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In January 2018, Gadgets Ltd, a kitchen appliance company, decides to significantly expand its operations. It decides to triple the size of its warehouse, and will need to borrow substantial funds to do so. Max, a non-executive director of Gadgets Ltd, becomes concerned that the proposed expansion of the company is too ambitious, and that the company may be having difficulty paying its bills on time, as final demand notices have been received and some suppliers are requiring cash on delivery. Sales figures have also shown a decrease over the past month. Max seeks and receives written advice from Earnest and Younger, the firm’s accountants, that the company can meet its debts. He also closely questions the Chief Executive Officer and the Chief Financial Officer about the need to expand so much and so quickly, and, on the basis of their response and his own enquiries about consumer and business confidence, he agrees to the expansion plans at the next Board meeting. Shortly after this, one of the major creditors of the company forces Gadgets Ltd into liquidation. It appears that the company has, in fact, been trading while insolvent. In truth, the expansion phase that the company embarked upon turned out to be a poor business decision. Although the Board had done careful research and made decisions based on all the available evidence, it did not foresee the effect of the arrival of Amazon Ltd in Australia - Amazon Ltd is a huge US online corporation, that could compete on price and quality, and it has 24 hour delivery times. Advise Max whether he may have any personal liability for the company’s debts under the Corporations Act 2001 (Cth), if (in fact) there are insufficient funds to pay all the creditors. Please ensure that you refer to relevant sections of the legislation and any relevant cases to support your answer.

In January 2018, Gadgets Ltd, a kitchen appliance company, decides to significantly expand its operations. It decides to triple the size of its warehouse, and will need to borrow substantial funds to do so. Max, a non-executive director of Gadgets Ltd, becomes concerned that the proposed expansion of the company is too ambitious, and that the company may be having difficulty paying its bills on time, as final demand notices have been received and some suppliers are requiring cash on delivery. Sales figures have also shown a decrease over the past month. Max seeks and receives written advice from Earnest and Younger, the firm’s accountants, that the company can meet its debts. He also closely questions the Chief Executive Officer and the Chief Financial Officer about the need to expand so much and so quickly, and, on the basis of their response and his own enquiries about consumer and business confidence, he agrees to the expansion plans at the next Board meeting. Shortly after this, one of the major creditors of the company forces Gadgets Ltd into liquidation. It appears that the company has, in fact, been trading while insolvent. In truth, the expansion phase that the company embarked upon turned out to be a poor business decision. Although the Board had done careful research and made decisions based on all the available evidence, it did not foresee the effect of the arrival of Amazon Ltd in Australia - Amazon Ltd is a huge US online corporation, that could compete on price and quality, and it has 24 hour delivery times. Marianne, a director of Gadgets Ltd, is very concerned that she may have breached her obligations under the Corporations Act 2001 (Cth), as she had voted in favour of the expansion plans, which turned out to be a poor business decision. Please advise her. Please ensure you refer to relevant sections of the legislation and any relevant cases to support your answer.

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