Which of the Following Is Considered an Inside Director of a Corporation

question 12

Multiple Choice

Which of the following is considered an inside director of a corporation?

• A) A director who is also an officer of the corporation
• B) A director who is also an officer of any corporation
• C) A director who is both an officer of any corporation and who stands to personally profit by an action being considered by the board
• D) A director who is qualified as an expert in regard to any product of the company

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Definitions:

Credits

Accounting entries that increase liabilities or equity or that decrease assets.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transactions, received from activities such as sales or services.

Debiting

The act of recording an entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Alphabetical Order

A method of sorting by arranging items according to the sequence of the letters in the English alphabet.