CFA Practice Question

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CFA Practice Question

A board member will not be considered independent if ______

I. his daughter works for the company as a secretary.
II. he used to be the national sales manager for the company but quit before he was elected a board member.
III. his wife works for an accounting firm which is the auditor for the company.
Correct Answer: All of them

All of these relationships are considered "material relationships."

User Contributed Comments 7

User Comment
magicchip Talk of overkill.
boddunah ha ha ha ha
jpducros What about if answer I was : His daughter works for the company as a carpet cleaner. Would that create also a material relationship ?
bani007 Still would not be independent because he would try to promote his daughter
jayj001 some power-wielding secretary
gulfa99 way to go..from a cleaner to a ceo :)
schweitzdm Rather funny. But a very good question jpducros, thanks for posing it.
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