One Corporate Activity That Is Specifically Reserved for the Board

question 25

Multiple Choice

One corporate activity that is specifically reserved for the board of directors is the:

• A) declaration of dividends.
• B) custody of records.
• C) preparation of budgets.
• D) day-to-day operation of the firm.

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Definitions:

Primary Source

Original documents, recordings, or other sources of information that have not been altered and provide direct evidence or first-hand testimony about an event, subject, or period.

Securities And Exchange Commission

A federal agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges in the United States.

Indexed Collection

A systematically organized collection of objects or documents that allows for easy retrieval of information.

EDGAR

An online system used by the U.S. Securities and Exchange Commission for companies to file required reports and information.