Corporate Governance

question 36

Multiple Choice

Corporate governance:

• A)if effective, should enhance stakeholders' confidence that the organization is being managed in their best interests.
• B)ensures the personal interests of top management are fully achieved.
• C)is only important to non-publicly traded companies.
• D)is a department within Canada Revenue with a mandate to ensure all corporations file annual tax returns.

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Definitions:

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.

Target Return

A specific profit objective set by a business, often used to guide pricing and investment strategies to meet financial goals.

Cost-Plus-Percentage-Of-Cost Pricing

A pricing method where the retail price is set by adding a predetermined percentage increase to the cost of the product.

Standard Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of a product to set the selling price.