When an Employee Knows That an Illegal Action Has Occurred

When an employee knows that an illegal action has occurred through corporate activity, such knowledge is:

A) imputed to the corporate employer.
B) imputed to the corporate employer, but only if the employer was in a position to have reasonably known of the illegal activity.
C) a basis of liability for the corporation if knowledge can be established.
D) not a basis to impute such knowledge to the corporate employer.