Which of the following statements is CORRECT? O a. The CFO generally reports to the firm's chief accounting officer, who is normally the controll O b. By law in most companies, the chairman of the board must also be the CEO. O c. The CFO is responsible for raising capital and for making sure that capital expenditures are desirable, but he or she is not responsible for the validity of the financial statements, as the controller and the auditors have that responsibility. O d. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to hav the board voted out and a new board voted in should a conflict arise. It is possible for a per
Which of the following statements is CORRECT? O a. The CFO generally reports to the firm's chief accounting officer, who is normally the controll O b. By law in most companies, the chairman of the board must also be the CEO. O c. The CFO is responsible for raising capital and for making sure that capital expenditures are desirable, but he or she is not responsible for the validity of the financial statements, as the controller and the auditors have that responsibility. O d. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to hav the board voted out and a new board voted in should a conflict arise. It is possible for a per
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following statements is CORRECT?
O a. The CFO generally reports to the firm's chief accounting officer, who is normally the controller.
O b. By law in most companies, the chairman of the board must also be the CEO.
O c. The CFO is responsible for raising capital and for making sure that capital expenditures are
desirable, but he or she is not responsible for the validity of the financial statements, as the
controller and the auditors have that responsibility.
O d. The board of directors is the highest ranking body in a corporation, and the chairman of the
board is the highest ranking individual. The CEO generally works under the board and its
chairman, and the board generally has the authority to remove the CEO under certain
conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have
the board voted out and a new board voted in should a conflict arise. It is possible for a person
to simultaneously serve as CEO and chairman of the board, though many corporate control
experts believe it is bad to vest both offices in the same person.
e. In most corporations, the CFO ranks above the CEO.
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