Which of the Following Is True Regarding Who May Be

question 40

Multiple Choice

Which of the following is true regarding who may be considered an insider under the Securities Exchange Act of 1934?

• A) Only directors are considered insiders
• B) Only employees are considered insiders
• C) Any shareholder is considered an insider along with all directors and all employees
• D) Directors, officers, and anyone who receives private information regarding the trading of securities may be considered insiders
• E) Only directors, officers, and majority shareholders are considered insiders

---

Definitions:

Selling and Administrative Expense Budget

A detailed plan outlining the expected selling and administrative expenses for a specific period, usually contributing to the master budget.

Budgeted Sales

Sales levels projected or planned for a future period.

Manufacturing Overhead Budget

A detailed plan that estimates all expected indirect production costs except for direct labor and direct materials.

Fixed Manufacturing Overhead

The set of manufacturing costs that do not vary with the level of production, such as salaries of factory supervisors and rent of the manufacturing facility.