A Board of Directors of an Organization

question 124

Multiple Choice

A board of directors of an organization

• A) represents the functional level.
• B) oversees the three levels of strategy.
• C) is equivalent to the corporate level.
• D) reports to the CEO.
• E) represents the strategic business unit level.

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Definitions:

Common-Size Financial Statement

A financial statement that expresses each line item as a percentage of a base figure, facilitating comparative analysis.

Vertical Analysis

Vertical analysis is a financial statement analysis method where each entry for each of the three categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Acid-Test Ratio

A stringent measure of liquidity that assesses a company's ability to meet its short-term obligations without relying on the sale of inventories.

Acid-Test Ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.