Directors Can Make Opportunistic Choices to Advance Their Personal Interest

question 8

Multiple Choice

Directors can make opportunistic choices to advance their personal interest when:

• A)they plan to sell off the corporation stocks at inflated prices.
• B)they hold majority of the stocks in the corporation.
• C)they are aware that the cost of forming a new board of directors is high.
• D)their personal returns from the well being of the corporation is high.

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Definitions:

Future Services

An obligation or arrangement to provide services at a later date, often related to prepaid contracts or deferred revenue.

PSA Handbook

Stands for the Public Sector Accounting Handbook, which contains the accounting standards and guidelines for public sector entities in Canada.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the regulatory authorities.

Government Business Enterprises

Public-sector entities that are legally separate from the government but operate in a commercial environment to deliver goods and services not typically provided by private sector businesses.