One Means That Is Considered to Improve the Effectiveness of Outside

question 12

Multiple Choice

One means that is considered to improve the effectiveness of outside directors is

• A)mandating that all outside directors be drawn from government or academia rather than industry.
• B)requiring that outside directors be former executives of the firm.
• C)requiring outside directors to own significant equity stakes in the firm.
• D)requiring that outside directors be truly objective by having no ownership interest in the firm.

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Definitions:

Merchandise Returns

Goods returned by the buyer to the seller, often due to defects, wrong size, or dissatisfaction.

Purchase Discounts

A deduction from the original purchase price allowed by the seller to the buyer, typically for early payment or bulk purchasing.

Merchandise Inventory

Goods held by a retailer or wholesaler that are available for sale to customers.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory immediately through the use of computer systems.