Which Statement in Relation to a Company Is Not Correct

question 10

Multiple Choice

Which statement in relation to a company is not correct?

• A)The directors are required to report to the shareholders by means of financial statements.
• B)The directors are appointed by the shareholders.
• C)If the accounts are required to be audited, the auditors are appointed by the directors.
• D)None of the above, i.e., all are correct statements.

Comprehend the concept and utility of horizontal analysis.

Understand the significance of solvency, profitability, and liquidity in assessing a business's performance.

Grasp the concepts of various financial ratios and their impact on company evaluation.

Recognize the effects of different management practices on key financial ratios.

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Definitions:

Understanding

The ability to comprehend, grasp, or make sense of something, including concepts, behaviors, or processes.

Information Shared

The dissemination of data, facts, insights, or knowledge among stakeholders to facilitate decision-making processes, collaboration, or awareness.

Decisions Made

Refers to the conclusions or judgments reached after consideration, leading to actions taken or strategies implemented.

Operating Effectiveness

The efficiency with which an organization can achieve its objectives through the optimal use of resources.