Which of the Followings Is False About Non-Executive Directors in a Corporation

question 7

Multiple Choice

Which of the followings is false about non-executive directors in a corporation?

• A)they work in the company on a day-to-day basis.
• B)they attend monthly board meetings.
• C)they are individuals with significant business experience.
• D)they are of a certain level of possible political importance.
• E)they are not involved in management.

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Definitions:

Merchandise Inventory

Merchandise inventory includes goods that a company intends to sell in the ordinary course of business, calculated at the cost of acquiring the goods.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Service Company

A business that provides intangible products or services to customers rather than physical goods.

Operating Cycle

The period it takes for a business to buy inventory, sell products, and generate cash from operations.