Generally, a Board Member Who Is a Source of Information

question 160

Multiple Choice

Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(an) ____ director.

• A) lead independent
• B) inside
• C) related
• D) encumbered

---

Definitions:

Profit

Profit represents the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Breach Contract

A failure to perform any term of a contract, written or oral, without a legitimate legal excuse, which allows the other party to seek compensation.

Reasonable Care

A legal standard requiring individuals to act with the caution and attentiveness that a prudent person would under similar circumstances.

Delegating Authority

The process by which a person or body authorizes another person or body to perform certain tasks or make decisions on its behalf.