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CTP · Question #124

(Topic 2) In order to be defined as independent, a corporate director:

The correct answer is B. cannot have a material relationship with the company. See the full explanation below for the reasoning.

Question

  • (Topic 2)

In order to be defined as independent, a corporate director:

Options

  • Acannot have owned preferred stock shares in the company.
  • Bcannot have a material relationship with the company.
  • Ccannot meet regularly with executive management outside of board meetings.
  • Dcannot have been an employee with the company during the past three years.

How the community answered

(31 responses)
  • A
    3% (1)
  • B
    71% (22)
  • C
    16% (5)
  • D
    10% (3)

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