In Preparing for Succession,the Senior Generation Has Certain Responsibilities

question 29

Multiple Choice

In preparing for succession,the senior generation has certain responsibilities.One of these is that:

• A)the estate of the senior generation should be settled and audited.
• B)the senior generation should hold the next generation accountable for their actions.
• C)the business should have a formal audit of the financial statements.
• D)the next generation should develop long term plans for leadership and be held to these plans.

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses from its total revenue, representing the profit or loss in a financial period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Account Balances

The amount of money in an account at any given time, which can reflect credits and debits from transactions.

Reacquired Shares

Stocks that were issued and subsequently bought back by the issuing company, reducing the number of shares outstanding on the open market.