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:

Current Rate Method

A method used in financial reporting to convert the financial statements of a foreign subsidiary to the parent company's reporting currency, using the current exchange rates.

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.

Assets And Liabilities

Resources owned and controlled by a business (assets) and obligations to transfer resources to another entity (liabilities).

Current Rate Method

An accounting technique used in currency translation where assets and liabilities are converted at the current exchange rate.