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:

Limited War

A conflict with restricted objectives, scope, or means, such as limiting the geographical area of the fight or avoiding the use of certain weapons.

Korean War

A conflict between North and South Korea from 1950 to 1953, in which North Korea, supported by China and the Soviet Union, and South Korea, supported by the United Nations and primarily the USA, fought to a stalemate.

New Look

A defense strategy under President Eisenhower that emphasized the strategic use of nuclear weapons while reducing conventional military forces.

Nuclear Weapons

Explosive devices whose destructive power derives from nuclear reactions, capable of causing massive destruction and loss of life.