Which of the following is a typical control for debt?
A)The board of directors approves all new debt.
B)The stockholders approve all new debt.
C)The CFO approves all new debt.
D)Upper managers approve all new debt.

Question

Quizplus · Accepted Answer

The board of directors typically approves all new debt as part of their role in overseeing the financial management of the company. This helps ensure that the amount and type of debt taken on is appropriate and aligned with the company's overall financial strategy. While CFOs and upper managers may be involved in the process, ultimate control rests with the board of directors. Stockholders do not typically have a role in approving new debt.

Which of the Following Is a Typical Control for Debt