The Board of a Corporation Should Act in the Interest

question 1

Multiple Choice

The board of a corporation should act in the interest of:
I.majority shareholders
II.minority shareholders
III.foreign shareholders

• A)(I) correct only.
• B)(II) correct only.
• C)(III) correct only.
• D)(I) and (II) correct only.
• E)(I),(II) and (III) correct.

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Definitions:

Vouchers Payable

An accounting term that represents the obligation of a business to pay for goods or services that have been received, but not yet paid for.

Purchases Discount

A contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.

Merchandise

Goods brought into a store for resale to customers.

Purchase Discounts

Reductions in price given by a supplier to a buyer for early payment within a specified period.