The Board Should Not Consider Limiting the Number of Years

question 14

True/False

The board should not consider limiting the number of years an individual can serve on the audit committee since the more an audit committee member understands the company the more effective that member will be able to perform the required duties.

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Definitions:

Generalized Reciprocity

A type of exchange where goods or services are provided without an immediate or specified return, often found within close relationships or communities.

Close Kin

Family members closely related by blood, typically immediate family such as parents, children, and siblings.

Entrepreneurs

Individuals who create, organize, and operate businesses, taking on greater than normal financial risks in order to do so, often seen as innovators who drive economic growth.

Traders

Individuals or entities engaged in the buying and selling of goods, services, or financial instruments, often acting as intermediaries in trade transactions.