The Directors of a Public Company Have a Responsibility To

question 16

Multiple Choice

The directors of a public company have a responsibility to:

• A) maintain an internal control system within the company.
• B) ensure financial statements are prepared showing a true and fair view of an organisation's financial situation.
• C) organise for financial reports to be audited.
• D) All of the above.

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Definitions:

Competitive Firm

A company that operates in a market where it has to compete with other firms for customers, setting prices based on market demand and supply.

Competitive Firm

A business operating in a market where it has little to no control over the price of its products because of competition from other firms.

Cost Table

A detailed listing of all costs associated with a project or business operation, used for budgeting and financial management purposes.

Break Even

The point at which total revenue equals total costs, making a business neither profitable nor unprofitable at this juncture.