Which of the Following Is Correct

question 104

Multiple Choice

Which of the following is correct?

• A)Management is under constant pressure from directors to produce pleasing financial results,whatever it takes.
• B)Directors oversee the managers of the company and have the primary goal of ensuring that financial decisions benefit management.
• C)Managers oversee the members of the Board of Directors.
• D)The stockholders elect the board of directors.

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Definitions:

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to the production of goods or services.

Total Revenue

The complete amount of income generated by a business from its sales or services before any costs or expenses are subtracted.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Disposable Income

The amount of money individuals or households have to spend or save after taxes have been deducted.