What Is an Inside Director

question 101

Multiple Choice

What is an inside director?

• A)a movie director who also appears in the movie
• B)a member of a corporate board of directors that is also a manager of the business
• C)the CEO that is selected by the corporation's board of directors
• D)a board of director chair who has been in the job for at least three years

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Definitions:

Bondholders

Individuals or entities that hold debt securities issued by corporations or governments, entitling them to receive fixed interest payments.

Share Price Maximization

The goal of increasing the value of a company's stock to benefit its shareholders.

Quality Goods

Products that meet or exceed customer expectations in terms of durability, reliability, and performance.

Weighted Average Cost of Capital (WACC)

A measure that reflects the average rate of return a company is expected to pay its security holders to finance its assets.