An Audit Committee Must Be Comprised of Outside Directors and at Least

question 10

Multiple Choice

An audit committee must be comprised of outside directors and at least one outside financial expert.An individual with which of the following characteristics is considered an outside director?

• A)A director who is not a member of management and has no other relationship to the organization.
• B)A consultant to the organization who works as an honorary member of the board.
• C)A director who is also a member of management and has no other relationship to the company.
• D)A director who is a CPA and CIO of an affiliated organization.

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Definitions:

Global Coffee Beans Producer

An entity or country engaged in the large-scale cultivation and export of coffee beans across the world.

Focus Strategy

A business approach where a company concentrates its resources on entering or expanding in a narrow market or industry segment.

Financial Services

Industries and businesses that manage money, including banks, investment companies, insurance companies, and real estate firms.

Per Capita Income

The average income earned per person in a specific area or country in a specified year.