Which of the Following Represents a Group Composed of Key

question 148

Multiple Choice

Which of the following represents a group composed of key officers of a corporation and outside members responsible for the general oversight of the affairs of the company?

• A) Board of Directors
• B) Internal Audit Staff
• C) External Auditors
• D) Audit Committee

---

Definitions:

Leverage

The use of borrowed funds or other financial instruments to increase the potential return of an investment.

Potential Return

The expected gain or loss from an investment, taking into consideration both the risk and the expected rate of return.

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership and possibly rights to dividends and a say in company matters.

SEC Registration

The process of filing documents required by the Securities and Exchange Commission prior to offering stock for sale to the public.