What Is the Role of Shareholders in Managing the Corporation

question 80

Multiple Choice

What is the role of shareholders in managing the corporation?

• A) Election of directors
• B) Approval of corporate transactions that are void or avoidable unless ratified
• C) Right to bring enforcement suits
• D) All of these

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Data

Financial data consists of records, figures, and quantitative information related to the financial status, operations, and performance of an entity.

Dividends

Payments made by a corporation to its shareholder members; it is the portion of corporate profits paid out to stockholders.

Average Collection Period

The average time it takes for a business to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.