The context and purpose of financial reporting

MNmuhammad nayan4y ago

1.10 Which of the following statements is/are true? 1. Directors of companies have a duty of care to show reasonable competence in their management of the affairs of a company. 2. Directors of companies must act honestly in what they consider to be the best interest of the company. 3. A Director's main aim should be to create wealth for the shareholders of the company. A 1 and 2 only B 2 only C 1, 2 and 3 D 1 and 3 only answer is C, I don't understand option 1 & 3, would you please explain sir.

John MoffatTutor4y ago#1

1 is meaning that the directors should run the company sensibly and should know what they are doing. 3 The directors are employed by the shareholders and so they should always be trying to do what is best for the shareholders (and what is best for the shareholders is that they get to be worth more :-) )

MNmuhammad nayan4y ago#2

thank you John

MMohamed4y ago#3

Thanks John

John MoffatTutor4y ago#4

You are welcome.

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