Definitions
Who are the members of a board of directors?
People elected by stockholders
Coral owns a gymnastics studio that teaches children and young adults to do gymnastics. What does Coral's business produce?
Intangible outputs
What financial analysis method involves comparing the same items on a company's financial statements for two or more periods?
Horizontal analysis
Who are the primary stakeholders influencing corporate governance?
The board of directors
When businesses divide the change in total revenue by the marginal product, what are they calculating?
Marginal revenue
Wellston Industries wants to compare the current business situation with a target situation. What tool will help Wellston obtain the information that it wants?
Gap analysis
What economic concept influences the cost of the production process?
Economies of scale
What form of business ownership must obtain a charter from the state in which it operates?
Corporation
What is a liability?
A claim a creditor has against a business's assets
John would like to be a business owner, has the money to invest, and wants to limit his liability. He does not have time to participate in the day-to-day operations of the business. What type of business ownership would you recommend?
Open corporation
What is a benefit of debt financing when starting a business?
You have control over how the money is spent
What are the internal and external controls, policies, and guidelines for reaching goals while meeting stakeholder's needs are all common elements of?
Corporate governance structures