Board Members Who Are Not Employed by the Corporation, but Handle

question 65

Multiple Choice

Board members who are not employed by the corporation, but handle the legal or insurance needs of the firm and are thus not True "outsiders," are what kind of directors?

• A) affiliated directors
• B) family directors
• C) retired directors
• D) management directors
• E) interlocked directors

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Definitions:

Collection Time

The average period that a company takes to collect cash from its credit sales.

Cheques

A document that is written, dated, and signed, which gives an absolute command to a bank to pay a specific amount of money to the recipient.

Bank Clearing Time

The process and time required for checks and other transactions to be processed through a bank or clearinghouse and the funds to become available.

Processing Time

The time required to complete a particular process, such as manufacturing or data processing.