Which of the Following Is True of Managers in an Organization

question 95

Multiple Choice

Which of the following is true of managers in an organization with good corporate governance?

• A)They must be nominated by the compensation committee.
• B)They should fulfill a fiduciary responsibility to the owners.
• C)They must consider only the single bottom line of profitability.
• D)They should follow an exclusive, rather than an internal, approach.

Understand the specific accounting standards applicable to various types of health care entities.

Identify the requirements for reporting donations and how they impact the Statement of Activities.

Differentiate between various types of not-for-profit entities and their accounting principles.

Recognize how expenses are classified and reported by not-for-profit entities.

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Definitions:

Agricultural Policies

Regulations and strategies implemented by governments to control the agricultural sector's market, aiming to stabilize prices, ensure a stable food supply, and protect agricultural incomes.

Criticisms

The expression of disapproval based on perceived faults or mistakes, or the analysis and judgment of merits and faults.

Inelastic Demand

A situation where the demand for a good or service is relatively insensitive to changes in price, meaning that percentage changes in price lead to smaller percentage changes in the quantity demanded.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives as prices change.