When Making Appointment Decisions, It Is Wise for the Board

question 45

True/False

When making appointment decisions, it is wise for the board of directors to avoid scrutinizing the reputations and ethical records for top managers.

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Definitions:

Retained Earnings

Accumulated net incomes of a company not paid out as dividends but retained for reinvestment in the business or to pay off debts.

Shareholders' Equity

This represents owners' claims after all liabilities have been deducted from the total assets of a company.

Total Liabilities

The sum of all financial obligations a company owes to outside parties.

Dividends Declared

An announcement by a company's board of directors of a dividend payment to shareholders, indicating the amount and payment date.