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NEW QUESTION: 1
A corporation is a legal entity that has rights and obligations. The corporation has a responsibility to act in the best interests of its owners. What term describes the obligation of the corporation to act in the best interest of its shareholders?
A. Mission statement
B. Corporate charter
C. Ethical responsibility
D. Fiduciary responsibility
Answer: D
Explanation:
Explanation/Reference:
Answer option A is correct.
A fiduciary responsibility describes the obligation of the corporation to act in the best interest of the shareholders of the organization. Shareholders are the owners of the company.
Answer option B is incorrect. Ethical responsibilities are linked to the fiduciary responsibility of the company, but this isn't the best answer for the question.
Answer option C is incorrect. The mission statement establishes the purpose and vision of the company.
Answer option D is incorrect. The corporate charter establishes the entity as a legal being, but doesn't describe the fiduciary responsibilities.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter Four: Workforce Planning and Employment. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Business Management and Strategy
Objective: Corporate Governance

NEW QUESTION: 2
Which customer maturity level is concerned with network security, formalized IT processes, and simplified management?
A. Service Provider
B. Building Momentum
C. Starting Out
D. Expansion
Answer: D

NEW QUESTION: 3
The Supplier Management process includes:
(1) Service Design activities, to ensure that contracts will be able to support the service requirements (2) Service Operation activities, to monitor and report supplier achievements (3) Continual Improvement activities, to ensure that suppliers continue to meet or exceed the needs of the business
A. 1 only
B. All of the above
C. 1 and 3 only
D. 1 and 2 only
Answer: B

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