What information must be included in the corporation's annual report?

The correct answer includes the essential components that a corporation is required to provide in its annual report, which are financial statements, a summary of operations, and disclosures of related party transactions.

Financial statements are a critical part of the annual report as they showcase the corporation's financial position, including the income statement, balance sheet, and cash flow statement. These documents inform stakeholders, including management, shareholders, and potential investors, about the company’s profitability, liquidity, and overall financial health.

The summary of operations provides a narrative of the company’s performance throughout the year, highlighting significant achievements, challenges faced, and strategic directions taken. This summary can help stakeholders understand the context behind the numbers presented in the financial statements.

Disclosures of related party transactions are mandatory for transparency. These disclosures inform the stakeholders of any transactions between the corporation and its related parties, ensuring that any potential conflicts of interest are clearly outlined. This transparency is crucial for maintaining trust and accountability within the organization and to external stakeholders.

In contrast, other options like market analysis and forecasts, shareholder testimonials and suggestions, and details on employee compensation, while potentially useful, are not required components of an annual report under the Revised Corporation Code. The focus is primarily on financial reporting and operational summaries relevant to stakeholders'