Under SEC Rules,which of the Following Is True

question 14

Multiple Choice

Under SEC rules,which of the following is true?

• A)Shareholders may be subject to personal liability for paying excessive executive compensation.
• B)Publicly held corporations must disclose executive compensation information to shareholders, but not the public.
• C)Board of director members can sue a corporation for excessive executive compensation.
• D)Board of director members may be subject to personal liability for paying excessive executive compensation.

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Definitions:

Favorable

A term usually used in finance and accounting to describe results that are better than anticipated or that result in a benefit.

Standard Direct Materials Costs

The budgeted or standard cost of the raw materials required to produce a unit of product.

Standard Price

A predetermined cost that companies use to budget and evaluate the performance of actual costs.

Standard Quantity

The established amount of materials or inputs expected to be used in the production of a good or service.