APR Accreditation: Business Literacy Questions & Answers Rated 100% Correct!!

Business Literacy - The ability to use financial and business information as the basis for decisions that help an organization achieve success. 10-K report (annual report) - An annual report that provides a comprehensive overview of a company. The 10-K must be filed within 60 days after the close of the company's fiscal year. The report contains crucial information, such as company's history, organizational structure, equity, holdings, earnings per share, subsidiaries, footnotes, corporate exhibits, etc. Key section is Management's Discussion and Analysis of Financial Conditions (MD&A). Management's Discussion and Analysis of Financial Conditions (MD&A) - A key section of the 10-K annual report, the MD&A is where companies list strengths, weaknesses, opportunities, and threats facing the company and its industry. 10-Q report (quarterly report) - A quarterly financial report containing unaudited financial data. The 10-Q is due 35 days after the close of each of the first three fiscal quarters. There is no filing after the fourth quarter because that is when the 10-K is filed. 8-K report (current report) - 8-K filings are filed for unscheduled material or corporate events of importance to the shareholders and the SEC. this is a great report to read to determine any significant problems the company may be facing, such as litigation, executive malfeasance, or other problems. Proxy statements - Otherwise known as Form Def 14A, the proxy statement is produced for the benefit of shareholders prior to the Annual Meeting of Shareholders so that they can make informed decisions about matters due to be discussed at the Annual Meeting. Issues covered can include proposals for new additions to the board of directors, information on directors' and executives' salaries, info on bonus and option plans for directors and key managers, and any declarations made by management. Regulation Fair Disclosure (Regulation FD) - Requires that all publicly traded companies disclose material information to all investors at the same time. Also opened quarterly analyst conference calls to small investors.Sarbanes Oxley - Legislation that covers corporate auditing accountability, responsibility, and transparency. Provisions within this law affect how information is disclosed. PR must know what a company must disclose and when.