An Outside Director Is

question 74

Multiple Choice

An outside director is

• A) a person who is not an employee of the company.
• B) a person from the employee group outside the upper level ranks.
• C) a person selected by the CEO.
• D) a person who is a high ranking company official.
• E) a person from the audit committee.

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Bank Checking Account

A bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used for managing daily transactions.

Internal Controls

Procedures and mechanisms established by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Safeguard Assets

Measures and procedures implemented by a company to protect its assets from theft, damage, or misuse.