With Respect to the Board of Directors of a Corporation,which

question 18

Multiple Choice

With respect to the board of directors of a corporation,which of the following is NOT correct?

• A) They manage the business and affairs of the corporation.
• B) They are the shareholders' elected representatives.
• C) They must always obtain shareholder approval before deciding questions of operating policy.
• D) They have the authority to delegate power to officers and agents.

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Definitions:

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Reportable Segment

A part of an organization distinguished by its business activities, products, or services, which is significant enough to require separate financial reporting under financial reporting standards.

Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Profits

Financial gains obtained when the revenue from business activities exceeds the expenses, taxes, and costs of operating.