which of the following statements is correct?\nin most corporations, the cfo ranks above the ceo\nby law in…

which of the following statements is correct?\nin most corporations, the cfo ranks above the ceo\nby law in most states, the chairman of the board must also be the ceo.\nthe 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 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.\nthe cfo generally reports to the firms chief accounting officer, who is normally the controller.\nthe 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.\nquestion 6

which of the following statements is correct?\nin most corporations, the cfo ranks above the ceo\nby law in most states, the chairman of the board must also be the ceo.\nthe 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 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.\nthe cfo generally reports to the firms chief accounting officer, who is normally the controller.\nthe 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.\nquestion 6

Answer

Brief Explanations:

  1. In most corporations, the CEO (Chief Executive Officer) is the top - ranking executive and ranks above the CFO (Chief Financial Officer), so the statement about CFO ranking above CEO is incorrect.
  2. There is no legal requirement in most states that the chairman of the board must also be the CEO.
  3. 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 works under the board and its chairman, and the board has the authority to remove the CEO under certain conditions. Also, while the CEO cannot remove the board, a conflict could lead to efforts to have the board voted out. And it is possible for one person to serve as both CEO and chairman, though some experts oppose this. This statement is correct.
  4. The CFO generally reports to the CEO, not the chief accounting officer (controller).
  5. The CFO is responsible for raising capital and evaluating capital expenditures, but also has some responsibility related to the validity of financial statements.

Answer:

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 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.