A Director Does Not Need to Disclose Any Conflict of Interest

question 35

True/False

A director does not need to disclose any conflict of interest before voting on a proposal.

---

Definitions:

Off-Balance Sheet Financing

Off-balance sheet financing is the use of funding or financial activities not recorded on the company's balance sheet to keep debt ratios low.

Capitalizing A Lease

The process of recognizing a leased asset and related lease liability on the balance sheet, treating the lease as a purchase financed by a loan.

Capital Lease

A lease considered a purchase of an asset for accounting purposes, where the lessee acquires all risks and rewards associated with ownership.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically involving payments for a shorter period than the asset's useful life.