Which of the Following Statements Is True About an Outside

question 84

Multiple Choice

Which of the following statements is true about an outside director?

• A) An outside director of an organization should have worked with the organization for at least 10 years at some point during his career.
• B) Outside directors tend to dominate boards because as compared to inside directors, these people have better access to most of the information about the company.
• C) An outside director should be a current employee of the organization.
• D) An outside director of an organization can be an executive of some other company.

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Definitions:

Charitable Contribution

A gift or donation made to a non-profit organization, which can often be used as a tax deduction by the donor.

Synagogue

A Jewish house of worship and community gathering place.

Home Equity Indebtedness

Home equity indebtedness refers to loans secured by the taxpayer's home, where the proceeds are not necessarily used to buy, build, or substantially improve the home.

Deductible

An amount that can be subtracted from an individual's gross income to reduce the amount that is subject to income tax.