Question

Question 43

Kyle is an attorney and accountant licensed to practice in Texas. He serves on the Board of Directors of Lucky Theaters, Inc. He also serves as the chief financial officer of Wally’s Outdoor Equipment, Inc. and is a member of Wally’s Board of Directors. He is an _____________ director for Lucky Theaters, and he is an __________ for Wally’s.

	a.	inside, outside
	b.	outside, inside
	c.	inside, outside
	d.	outside, outside

Answer 1

Correct Answer: Option B) Outside,Inside

Explanation :

An inside director is a member of the board who also is an employee, officer, or direct stakeholder in the company. Kyle is a member of the board of Wally's outdoor equipment Inc and the CFO of the same. Thus, Kyle is the inside director of wally's.

Unlike an inside director, an outside director aka non-executive director is not an employee or stakeholder in the company. Kyle is a just member of the board for Luck theaters, Inc, making him the outside director of the same.

Please give a thumbs up if you find this helpful :)