What Is an Inside Director

question 7

Multiple Choice

What is an inside director?

• A)A shareholder charged with the illegal act of insider trading
• B)A member of the board of directors who is also a board member of a competing firm
• C)A shareholder who is a board member of a competing firm
• D)A member of the board of directors who is also an employee of the corporation

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; these costs decline as production increases.

Marginal Cost

The financial cost of producing an extra unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Average Variable Cost

Represents the cost that varies with the level of output, calculated by dividing the variable costs by the quantity produced.