Which of These Groups Is an External Monitor in a Publicly

question 18

Multiple Choice

Which of these groups is an external monitor in a publicly traded company?

• A)Board of directors
• B)Shareholders
• C)Independent auditors
• D)Top managers

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Definitions:

Loan Indentures

Formal agreements specifying the terms of a bond or loan, including the interest rate, repayment schedule, and other conditions.

Covenants

Clauses in a contract or loan agreement that stipulate certain actions that must be taken or avoided by the borrower.

Dividend Payments

Periodic payments made by a company to its shareholders out of its profits or reserves.

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to shareholders in the form of dividends.