Which of the Following Statements Best Describes the Responsibilities of Directors

question 65

Multiple Choice

Which of the following statements best describes the responsibilities of directors under the Canada Business Corporations Act?

• A) Directors are responsible only for those management activities that they do not delegate to officers.
• B) Directors have no management responsibilities because they are only responsible for supervising others who actually manage the corporation.
• C) Directors are responsible only for those matters delegated to them by shareholders.
• D) Directors are responsible for managing or supervising the management of the business of the corporation and its internal affairs.
• E) Directors are responsible only for the internal affairs of the corporation, such as declaring dividends and issuing shares.

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Definitions:

Tax Burden

The aggregate sum of taxes that individuals or businesses remit, correlated to their earnings or profits.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.

Elastic

A characteristic of a product or service indicating that a change in price leads to a significant change in the quantity demanded or supplied.

Laffer Curve

An illustration of the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes revenue.