Jose Has an Ownership Interest in TY Corporation, but He

question 72

Multiple Choice

Jose has an ownership interest in TY Corporation, but he is not involved in day-to-day operations. Jose can best be described as a(n) ________?

• A) Director.
• B) Affiliated director.
• C) Outside director.
• D) Officer.
• E) Shareholder.

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Definitions:

Social Exchange

A theoretical framework that explains social relationships in terms of costs and benefits, where individuals seek to maximize rewards and minimize costs.

Obligated

Refers to being bound by a duty, contract, or sense of responsibility to perform a particular action or role.

Social Exchange Theory

A theoretical perspective, based on the principle of reinforcement, that assumes that people will likely choose actions that maximize rewards and minimize costs.

Exchange Network

A social structure that consists of individuals or entities sharing resources and services through a system of transactions.