Which of the Following Statements Is Not True Regarding the Usual

question 12

Multiple Choice

Which of the following statements is not true regarding the usual role and function of various types of directors of a company?

• A)A chief executive officer is the managing director of a company.
• B)An executive director is involved in the full time management of a company and is an employee of the company.
• C)A chief finance officer is a form of executive director who is part of the senior management of a company.
• D)Non-executive directors are directors who are not involved in the full time management of the company but are employees of the company.

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Definitions:

Shares Issued

The total number of shares that have been allocated and distributed by a company to shareholders.

Issued Common Stock

Shares that have been allocated to shareholders as part of a company's capital.

Additional Paid-in Capital

The amount of money that shareholders pay in excess of the par value of shares during the issuance of stock.

Balance Sheet

The Balance Sheet is a financial statement that provides a snapshot of a company's financial condition at a specific point in time, listing assets, liabilities, and shareholders' equity.