Board Members Do Not Necessarily Need to Own Stock

question 58

True/False

Board members do not necessarily need to own stock.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments not considered cash equivalents.

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted into cash within a year.

Acquisition

The process of acquiring control of another company by purchasing its shares or assets.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a firm, as reported in the cash flow statement.