An Audit Committee Must Be Comprised of Outside Directors and at Least

question 85

Multiple Choice

An audit committee must be comprised of outside directors and at least one outside financial expert.Which of the following is considered an outside director?

• A)A director who is not a member of management and has no other relationship to the organization.
• B)A consultant to the organization who works as an honorary member of the board.
• C)A director who is also a member of management and has no other relationship to the company.
• D)A director who is a CPA and CIO of an affiliated organization.

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Definitions:

MgO

Magnesium oxide, a white hygroscopic solid mineral that is used as a refractory material, in medication, and as a magnesium source in animal feeds.

Oxidation Number

A concept in chemistry that represents the degree of oxidation of an atom in a chemical compound, indicating the number of electrons lost or gained by an atom.

Oxidation Number

A number assigned to an atom in a chemical compound that represents the number of electrons lost or gained by the atom.

Carbon

A chemical element with symbol C and atomic number 6, fundamental to life and used in countless industrial applications.