Given the Demands for Greater Accountability and Improved Performance, Which

question 140

Multiple Choice

Given the demands for greater accountability and improved performance, which of the following is NOT a voluntary change many boards of directors have initiated?

• A) Moving toward having directors from different backgrounds
• B) Strengthening the internal management and accounting control systems
• C) Compensating directors with stock options rather than with fixed remuneration
• D) Establishing and using formal processes to evaluate the board's performance

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Definitions:

Annuities

Financial products that pay out a fixed stream of payments to an individual, typically used as part of retirement planning.

Compounded Semi-Annually

An interest calculation method where interest is added to the principal sum of a deposit or loan at mid-year and end-of-year, resulting in interest earning interest.

Guaranteed Contract

An agreement ensuring certain terms are fulfilled, often used in the context of employment contracts guaranteeing payment.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.