Which of the Following Is $\bold{not}$ A Key Factor in the Effectiveness of a Board of the Effectiveness

question 45

Multiple Choice

Which of the following is $\bold{not}$ a key factor in the effectiveness of a board of directors is:

• A)diversity.
• B)independence.
• C)competence.
• D)subjectivity.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales volume, such as rent and salaries.

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Total Contribution Margin

The difference between total sales revenue and total variable costs, representing the amount available to cover fixed expenses and generate profit.