Which of the Following Statements About Corporate Decision Making Is

question 43

Multiple Choice

Which of the following statements about corporate decision making is most accurate?

• A)Decisions by directors must be approved by shareholders.
• B)Decisions by directors or shareholders are decisions of the company itself.
• C)Directors are the agents of the shareholders.
• D)Directors have the power to override the decisions of shareholders.

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Definitions:

Finished Goods

These are manufactured products that have completed the production process and are ready for sale.

Variance Analysis

The process of investigating the difference between actual financial performance and budgeted or standard costs to identify the causes of variances.

Management By Exception

The review of budget reports by top management focused entirely or primarily on differences between actual results and planned objectives.

Materials Quantity Variance

The difference between the expected quantity of materials to be used in production and the actual quantity used, calculated in terms of cost.