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Top Management Has Assured Elizabeth,the Supervisor of the Accounting Department,that

question 46

Essay

Top management has assured Elizabeth,the supervisor of the accounting department,that the budget for her department is "flexible." Elizabeth thinks that this means she can change the figures herself as need be.Is she correct? Why or why not?


Definitions:

Preferred Shares

A class of stock in a corporation that typically offers dividends and other privileges above common shares, usually without voting rights.

Incorporators

Individuals who file the necessary paperwork and legally establish a corporation, becoming its initial shareholders and possibly its initial directors.

Initial Board

The first group of individuals appointed or elected to govern and oversee a newly formed corporation or organization.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability, and recognized as having rights and responsibilities.

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