Which of the Following Policies Helps Keep a Corporate Officer

question 89

Multiple Choice

Which of the following policies helps keep a corporate officer from being sued for honest mistakes made on behalf of a corporation?

• A)the duty of loyalty
• B)the duty of obedience
• C)the business judgment rule
• D)self-dealing

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Definitions:

Contribution Margin

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.

Variable Cost

Costs that change in proportion with the level of output or activity, such as raw materials and labor costs.

Scenario Analysis

A process of examining and evaluating possible events or scenarios that could affect the outcome of a decision or a projection.