Compared to a Formal Board of Directors, an Advisory Board

question 44

Multiple Choice

Compared to a formal board of directors, an advisory board

• A) is subject to more scrutiny.
• B) has more functions in a closely held corporation.
• C) is subject to less scrutiny.
• D) is a less costly alternative.
• E) has more control in a wholly owned corporation.

Identify processes and classifications within banking and service organizations.

Understand the principles of inventory valuation and cost inclusion according to accounting standards.

Recognize the importance of cost classification in management practices for service entities.

Identify commonalities and differences in the value chains of service firms and merchandising entities.

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Definitions:

RFQ

A Request for Quotation (RFQ) is a business process in which a company asks external suppliers to offer a quote for the supply of specific goods or services under designated conditions.

Reverse Auction

An auction in which the roles of buyer and seller are reversed, with the seller competing to obtain business from the buyer and prices typically decreasing as the auction progresses.

Disintermediation

Elimination of intermediaries in electronic commerce.

Substitute Products

Products that can serve as replacements for each other; when the price of one product rises, the demand for its substitute may increase.