Which of the Following Statements Is Correct About Non-Executive Directors

question 15

Multiple Choice

Which of the following statements is correct about non-executive directors?

• A)A grey director is a non-executive director who may,at times,experience a conflict of interest because of their positions with other organisations;
• B)Non-executive directors must be independent;
• C)Listed companies must have at least one non-executive director on their board;
• D)Non-executive directors do not have the same powers as executive directors.

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Definitions:

Total Variable Cost

The sum of expenses that vary directly with the level of production or sales volume.

Variable Costs

Costs that change in proportion to the level of activity or volume of production.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance payments.

Diminishing Marginal Product

Diminishing marginal product occurs when adding an additional factor of production results in a lower increase in output, embodying the principle of decreasing returns.