To Encourage Individuals to Serve on Boards of Directors,legislatures Have

question 10

Essay

To encourage individuals to serve on boards of directors,legislatures have enacted a variety of measures to protect the good faith and due diligent activities of directors.Discuss the types of measures enacted by state legislation.

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Definitions:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

External Financing Need

The requirement for funds from sources outside the business, such as loans or equity financing, to support operations or growth.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings distributed to its shareholders in the form of dividends.