A Stockholder-Approved Amendment to the Certificate of Incorporation May Indemnify

question 14

Multiple Choice

A stockholder-approved amendment to the certificate of incorporation may indemnify directors who: ______.

• A) acted in bad faith.
• B) acted negligently.
• C) breached their duty of loyalty.
• D) gained an improper personal benefit.

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Definitions:

Labor Efficiency Variance

The difference between the actual labor hours used and the standard hours expected for the level of production achieved.

Direct Labor

The cost of workers who are directly involved in the production of goods or the delivery of services.

Standard Cost System

An accounting method that assigns predetermined costs to products and services, which are then compared to actual costs to measure performance.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor, used as a measure of performance in cost control.