An Interlocking Directorate Is a Linkage That Results When a Director

question 101

True/False

An interlocking directorate is a linkage that results when a director from one company sits on the board of another company.

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Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture.

Net Annual Cash Inflow

The difference between all cash received and all cash expended by a business in one year.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment.

Rate of Return

A measure of the gain or loss generated on an investment relative to the amount of money invested.