Which of the Following Best Describes the Role of Corporate

question 16

Multiple Choice

Which of the following best describes the role of corporate governance?

• A)Management decides which accounting principles are the most appropriate.
• B)Shareholders vote to decide who should be members of the board of directors.
• C)An independent board of directors holds the management team accountable to shareholders and other constituents.
• D)Management is compensated based on the company's profitability.

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Definitions:

Discontinued Operations

Components of a business, such as a department or segment, that have been disposed of or sold.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating the company's overall profitability.

Discontinued Operations

Components of a business that have been sold or abandoned and are reported separately in the financial statements to give a clearer picture of ongoing operations.

Component

A distinct and often smaller part of a larger system, that contributes to the overall functionality or structure of that system.