One of the Changes to Enhance the Effectiveness of the Board

question 139

True/False

One of the changes to enhance the effectiveness of the board of directors is the creation of a "lead director" role that has strong powers with regard to the board agenda and oversight of non-management board member activities.

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Definitions:

Office Salaries Expense

The costs associated with paying salaries to administrative and office employees.

Indirect Expense

Expenses incurred that are not directly linked to a specific product or service, such as utilities or rent for the business premises.

Service Department Charges

The costs of services provided by an internal service department and transferred to a responsibility center.

Profit Center

A branch or division of a business that is directly responsible for generating its own revenue and profits.