A Board of Directors Is Said to Be Captured When

question 21

Multiple Choice

A board of directors is said to be captured when:

• A)a majority of the directors are independent directors.
• B)a majority of the directors are outside directors.
• C)its monitoring duties have been compromised by connections or perceived loyalties to management.
• D)when the CEO also serves as chairman of the board of directors.

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Definitions:

Selling

Expenses incurred directly and indirectly in making sales, including advertising, sales commissions, and the cost of sales personnel.

Administrative Expenses

Overhead or indirect costs related to the general operation of a company, such as office supplies, legal fees, and management salaries.

Planning Budget

A financial plan that estimates the revenues and expenditures for a certain period of time in advance.

Personnel Expenses

Costs associated with employing staff, including salaries, benefits, training, and taxes.