Which of the Following Statements About Directors of a Company

question 42

Multiple Choice

Which of the following statements about directors of a company is true?

• A)Directors are elected by management of a company.
• B)Directors only get paid if the company increases its profitability that year.
• C)Directors are shareholders' representatives.
• D)All directors of a company are senior managers in that company.

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Definitions:

Activity Level

Refers to the volume of production or the quantity of operations that influences costs in manufacturing or service delivery.

Net Operating Income

Profit generated from a company's core business operations, excluding deductions of interest and taxes.

Flexible Budget

A flexible budget adjusts based on changes in the volume of activity, allowing for a more accurate comparison of actual to budgeted performance.

Tenant-Days

The total number of days rented across all properties within a specified timeframe, used for calculating occupancy rates and revenue in the hospitality or rental sector.