The Compensation Paid to Board Members

question 80

Multiple Choice

The compensation paid to board members:

• A)varies from no pay to $10,000 per meeting.
• B)may include a percentage of the profits.
• C)is typically the primary motivation for someone agreeing to be a member.
• D)typically includes Directors and Officers Liability Insurance.

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Definitions:

Perpetual Inventory System

An accounting method where records of inventory are updated on a continuous basis as goods are sold or received.

Weighted Average

A calculation method that assigns different weights to different items, making some items more influential than others based on their relevance or significance.

Inventory Control

The process of managing inventory to ensure an adequate supply without excessive oversupply.

Purchase Order

A document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.