Which of the Following Is an Incorrect Statement About Officers

question 8

Multiple Choice

Which of the following is an incorrect statement about officers?

• A) Their duties are generally set forth in the corporation's bylaws.
• B) They have a fiduciary obligation to the corporation.
• C) They are agents of the corporation.
• D) Their authority as agents is increased if they are shareholders.

---

Definitions:

Note Payable

A financial obligation or loan evidenced by a written promise to pay a specific amount on a future date or over a certain period.

Current Liability

Financial obligations or debts that a company is expected to settle within one year or within its normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle, whichever is longer.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; essentially the net worth of a company.