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

question 20

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:

Transfer Pricing

The pricing of goods, services, and intangibles transferred within divisions of a company or across affiliated entities to reflect market conditions.

Support Department

An organizational unit that provides essential services to other departments within an organization but does not directly contribute to profit.

Internal Support

Refers to the services and resources within an organization that assist its operations, such as IT support, human resources, and administrative assistance.

Direct Operating Expenses

Costs that can be directly tied to the production or delivery of a company's products or services, excluding overhead or administrative expenses.