The New York Stock Exchange Requires That the Audit Committee

question 74

Multiple Choice

The New York Stock Exchange requires that the audit committee of boards of directors be composed of ________.

• A) outsiders only
• B) insiders only
• C) a combination of outsiders and insiders
• D) men and women

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Definitions:

Ethical Investors

Ethical investors focus on investing in companies that adhere to specific ethical or moral guidelines, such as environmental sustainability or social responsibility.

Net Profit

The actual profit after operating expenses, interest, taxes, and depreciation have been deducted from total revenues; it is the bottom line of the income statement.

Shareholder Wealth

The total value of an investment in a company, often measured by the price of the company's stock multiplied by the number of shares owned.

C Corporations

A type of corporation in the U.S. that is taxed separately from its owners.