In Reality,the Sequence of the Flow of Authority of a Corporation

question 69

Multiple Choice

In reality,the sequence of the flow of authority of a corporation from the powers granted in the charter of the corporation is from the:

• A) CEO to the directors to the stockholders.
• B) directors to the CEO to the stockholders.
• C) stockholders to the directors to the CEO.
• D) CEO to the stockholders to the directors.

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Definitions:

Selling Commission

A fee paid to salespersons or agents for selling a company's products or services, usually a percentage of the sale price.

Net Operating Income

An accounting term representing the profit derived from a company's everyday, non-financial activities and excluding extraordinary items.

CVP Analysis

Short for Cost-Volume-Profit Analysis, it's a management accounting technique used to analyze how changes in costs and volume affect a company’s operating income and net income.

Sales Mix

The combination of different products or services that a company sells, significantly impacting its profitability due to differing margins on each item.