The SEC and FASB Are Best Described as External Influences

question 50

Multiple Choice

The SEC and FASB are best described as external influences that directly affect an organization's

• A) hiring practices.
• B) philosophy and operating style.
• C) internal environment.
• D) methods of assigning authority.

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Definitions:

Electric Company

A business entity that generates, transmits, distributes, or sells electricity to consumers and businesses.

Corporate Veil

The Corporate Veil is a legal concept that separates the actions and liabilities of a corporation from those of its shareholders, directors, and officers, protecting personal assets from business debts and obligations.

Shareholders Owners

Individuals or entities that own shares in a corporation, giving them certain rights and a stake in the company's performance.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.