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:

Note Payable

A written promise to pay a specific amount of money, usually including interest, by a certain date or upon demand.

Management Fees

Charges levied by managers of investment funds or other managed investment schemes for administering investment funds.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, encompassing all revenues, gains, expenses, and losses.

Equity Method

A method for accounting for investments where the investor recognizes its share of the profits and losses of the investee..