A Board of Directors Has Three Formal Responsibilities: Appoint the Officers

question 43

Multiple Choice

A board of directors has three formal responsibilities: appoint the officers of the firm, declare dividends, and:

• A) write the firm's strategic plan
• B) conduct the annual meeting
• C) provide funding for the firm
• D) represent the firm in public relations activities
• E) oversee the affairs of the corporation

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Definitions:

Operating Cash Flow

The cash a company generates from its normal business operations, excluding financing and investing activities.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Production Output

The quantity of goods and services produced by a company or sector over a specified period.

Fixed Costs

These are business expenses that do not vary with the level of goods or services produced, such as rent, salaries, and insurance.