Which of the Following Would Be Considered a Benefit to Having

question 78

Multiple Choice

Which of the following would be considered a benefit to having inside directors on a board of directors?

• A)​Greater independence from managerial influence
• B)​Greater first-hand knowledge about the firm.
• C) ​More effective control of managers.
• D) ​None of the above.

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Definitions:

Operating Activities

The primary day-to-day activities of a business involved in producing and selling its goods or services, reflected in the cash flow statement.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for non-cash transactions and changes in working capital accounts to arrive at net cash flow from operating activities.

Increase in Cash

An upward movement in the cash balance of a business during a specific period of time.

Direct Method

In accounting, a cash flow statement preparation approach that lists specific cash inflow and outflow categories directly.