Identify the duty of obedience according to which board members should strive toward corporate objectives and are not permitted to act in a way that is inconsistent with the central goals of an organization.
A. Duty of good faith
B. Duty of candor
C. Duty of loyalty
D. Duty of care
Answer: A
You might also like to view...
Persuasive advertising is used more in the business-to-business sector than in consumer marketing
Indicate whether the statement is true or false
Most of the ethics issues in negotiation are concerned with standards of truth telling in that an individual must decide when they should tell the truth.
Answer the following statement true (T) or false (F)
The partial or complete outsourcing of internal audit activities is most likely made to public accounting firms or to other specialized firms who perform which of the following?
a. Primarily risk, control, and audit activities. b. Attestation services as demanded by market place. c. Operations analysis and risk analysis. d. Analytical and substantial procedures.
Managers of many companies frequently provide a pro forma earnings amount in conjunction with their annual or quarterly earnings calculated in accordance with GAAP. Managers claim that pro forma earnings numbers more fairly reflect a company's
performance. Required: 1 . Explain the meaning of the term "pro forma earnings". 2 . Discuss the advantages and disadvantages of reporting pro forma earnings numbers.