Bob Is on the Board of Megagiant Corp

question 16

Multiple Choice

Bob is on the board of Megagiant Corp. and Karen is on the board of Supersize Inc. Both Bob and Karen serve on the board of Mega-Superbank. This type of interlocking directorate is called a(n)

• A) direct interlock.
• B) indirect interlock.
• C) conflict of interest.
• D) shared monopoly.

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Definitions:

Effective Rate of Return

A measure of the return on an investment that accounts for the effect of compounding over a specified time period.

Contributions

Payments or services provided by individuals or organizations to a common fund or project.

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that provides tax benefits.

Contributions

Payments or investments made into a scheme, plan, or project by individuals or entities.