The Directors and Officers of a Corporation Must Act Within

question 106

True/False

The directors and officers of a corporation must act within the authority conferred upon them by the state's corporation code,the articles of incorporation,the corporate bylaws,and the resolutions adopted by the board of directors.This duty is called the duty of care.

---

Definitions:

Cost of Goods Sold

The immediate expenses related to the manufacture of goods a company sells, which includes materials and labor.

Freight-In

The cost associated with transporting goods into a place of business, usually considered part of the inventory cost.

Credit Sales

Transactions where goods or services are sold by a business and payment is received at a later date.

List Prices

List prices refer to the advertised or official price of a product before any discounts or reductions are applied.