In a Normal Corporate Structure, Managers

question 27

Multiple Choice

In a normal corporate structure, managers:

• A)assume the liabilities of the corporation.
• B)legally have the final say in major business decisions.
• C)confer daily with stockholders.
• D)assume responsibility for the day-to-day decisions made at the firm.
• E)all of the above.

---

Definitions:

Double Counting

The mistake of including both the value of intermediate products and the value of final products in calculating gross domestic product; counting the same production more than once

Financial Assets

Instruments that represent a financial value, including stocks, bonds, bank deposits, and mutual funds.

Transfer Payments

Cash or in-kind benefits given to individuals as outright grants from the government.

Double-Entry Bookkeeping

An accounting method that records each transaction in two accounts, ensuring that the total debits equals the total credits and maintaining the balance of the accounting equation.