External Users Want Answers to All of the Following Questions

question 99

Multiple Choice

External users want answers to all of the following questions except:

• A)Is the company earning satisfactory income?
• B)Will the company be able to pay its debts as they come due?
• C)Will the company be able to afford employee pay raises this year?
• D)How does the company compare in profitability with competitors?

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Definitions:

Ultra Vires

A Latin term meaning “beyond the powers”; in legal context, actions taken by a corporation or company officials that are beyond their legally granted corporate powers.

Quorum

That number of persons, shares represented, or officers who may lawfully transact the business of a meeting called for that purpose.

Adopting And Amending Bylaws

The procedure for creating and modifying the rules that govern the internal management of an organization, typically requiring approval by its governing body or members.

Straight Voting

Straight voting is a voting system in corporate shareholder meetings where each shareholder's voting power is proportional to the number of shares they own, used mainly in electing directors.