The Person Charged with Running the Corporation by Instituting the Rules

question 22

Multiple Choice

The person charged with running the corporation by instituting the rules and policies set by the board of directors is called:

• A)the chief operating officer.
• B)the company president.
• C)the chief executive officer.
• D)the chief financial officer.

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Definitions:

Incremental Net

The net change in financial outcomes resulting from a particular decision or action, considering only the relevant costs and benefits.

Useful Life

Useful life is the estimated time period that an asset is expected to be useful for the operations of a business before it is fully depreciated.

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment.

Present Value

The present value of a future amount of money or series of payments, calculated based on a certain rate of return.