A Board of Directors Should Not

question 50

Multiple Choice

A board of directors should not: 

• A) have members with unlimited terms.
• B) have an odd number of members.
• C) be comprised of external advisors.
• D) be compensated with anything other than stock.

Interpret graphical representations of market situations including the effects of various taxes and subsidies.

Understand the implications of price controls (ceilings and floors) on market shortages and surpluses.

Understand the impact of taxes on market equilibrium prices and quantities.

Identify the distribution of tax burdens between buyers and sellers.

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Definitions:

Information-Processing Theorists

Scholars who study how humans think, perceive, memorize, and learn, comparing the mind to a computer that processes incoming information.

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The mental process of generating conclusions, judgments, or inferences from facts or premises.