The Requirement That a Director Act in Good Faith Means

question 19

Multiple Choice

The requirement that a director act in good faith means that a director must act:

• A)Honestly.
• B)Reasonably.
• C)Competently.
• D)Correctly.

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Definitions:

Budget Coordinator

A person responsible for preparing, managing, and overseeing the budgeting process within an organization, ensuring financial resources are allocated efficiently.

Direct Materials Budget

A financial plan that estimates the raw materials needed for production and the associated costs for a specific period.

Long-Range Planning

The process of setting long-term objectives and determining the strategies to achieve these goals over an extended period.

Financial Budgets

Detailed plans that outline an organization's financial goals, revenues, and expenses over a specific period.