Providing Information to External Users for Decision Making Is the Purpose

question 6

Multiple Choice

Providing information to external users for decision making is the purpose of which of the following?

• A)Management reports
• B)Tax forms
• C)Financial statements
• D)Inventory reports

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Definitions:

MBCA

The Model Business Corporation Act, a set of statutory provisions designed for the incorporation and operation of a business corporation.

Incorporator

The individual or entity that files the articles of incorporation, thus legally forming a corporation.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formed, which the corporation may later ratify or reject.

Promoter

A person who incorporates a business, organizes its initial management, and raises its initial capital.