Which of the Following Scenarios Gives Rise to Conflicts of Interests

question 13

Multiple Choice

Which of the following scenarios gives rise to conflicts of interests in corporate governance?

• A)Senior executives determining the compensation received by board members
• B)Board members hand-selecting employees in their company
• C)A CEO not chairing the board of directors
• D)The absence of cross-fertilization of boards

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Definitions:

Discount Period

The time frame during which a buyer can pay less than the full invoice amount due to early payment incentives.

Sales Tax

A government-imposed tax on sales of goods and services, typically collected at the point of sale from consumers.

Charge Customer

This involves billing a customer for goods or services rendered, resulting in an accounts receivable entry in the company's books.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used, but not yet paid for.