The Requirement That a Director Act in Good Faith Means

question 47

Multiple Choice

The requirement that a director act in good faith means that a director must act:

• A)honestly.
• B)reasonably.
• C)competently.
• D)correctly.

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Definitions:

Donation Revenue

Income received from donations, often pertaining to non-profit organizations.

Specific Project

A particular and defined piece of work, usually with a set duration, objectives, and resources, meant to achieve a specific goal.

Restricted Contribution

Funds donated with specific conditions attached by the donor, limiting the use of the funds by the recipient.

Statement of Changes

A financial statement delineating how and why specific equity accounts in a company's balance sheet changed over a period.