A Director's Responsibilities to a Corporation Include Which of the Following

question 32

Multiple Choice

A director's responsibilities to a corporation include which of the following?

• A) Declaring dividends
• B) Paying dividends
• C) Appointing officers
• D) Making significant policy decisions
• E) All of these choices are correct.

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Definitions:

Earnings Decrease

A reduction in the income a company generates from its activities, excluding extraordinary and non-recurring items.

Risk

The potential for experiencing losses or less-than-expected returns, inherent in investments and business activities.

Common-sized Financial Statements

Financial statements that present all items in percentage terms. The balance sheet items are presented as a percentage of assets, and income statement items are presented as a percentage of sales.

Industry Averages

Statistical benchmarks that represent the standard or average performance in a particular industry, useful for comparison and analysis.