A Director

question 10

Multiple Choice

A director:

• A)cannot be removed from office if he/she voluntarily failed to attend directors' meetings.
• B)can be removed from office if he/she has acted contrary to the interests of the corporation.
• C)cannot be removed from office by shareholders without any cause.
• D)can be removed from office without being given notice or a hearing.

---

Definitions:

Cash Operating

The process dealing with the direct cash flows from business operations, emphasizing a company's liquidity in the short term.

Required Rate

The minimum expected return by investors to compensate for the risk of an investment, often used in capital budgeting.

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization, impacting its depreciation calculations.

Straight-Line

A method of calculating depreciation or amortization of an asset evenly across its useful life.