Board Members of Public Corporations Can Be Liable for Their

question 74

Multiple Choice

Board members of public corporations can be liable for their actions that may result in the loss in value of the retailer's stock.To cover this potential loss,retailers typically provide them with ________ insurance.

• A) property damage
• B) directors' and officers' liability
• C) public liability
• D) workers' compensation

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Definitions:

Modified Approach

Modified Approach is a method in governmental accounting allowing certain assets to be reported at historical cost, exempt from the regular depreciation accounting if they are maintained at predefined condition levels.

Infrastructure Assets

Long-term physical assets that are critical for providing public services, including roads, bridges, and water supply systems.

Maintenance Costs

Expenses incurred to keep an asset in working order or restore it to proper condition; does not improve upon the original asset.

Government-Wide Financial Statements

Comprehensive reports that provide an overview of a government entity’s financial activities and balances, including both governmental and business-type activities.