Which of the Following Is True of the Composition of a Board

question 42

Multiple Choice

Which of the following is true of the composition of a board of directors?

• A) The number of initial directors is fixed by the shareholders.
• B) The number of directors remains fixed throughout the lifetime of a company.
• C) A board of directors must consist of more than one individual.
• D) A board of directors consists of inside and outside directors.

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Definitions:

Production Budget

A plan detailing the quantity of each product a company aims to produce within a specific timeframe, factoring in projected sales and inventory requirements.

Finished Goods Inventory

Products that have completed the manufacturing process and are ready for sale.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used for managing liquidity and ensuring a company can meet its obligations.

Budgeted Cash Receipts

An estimation of the cash a company expects to receive within a certain period, based on projected sales or revenue.