Which of the Following Is True Regarding Inside Directors and Outside

question 3

Multiple Choice

Which of the following is true regarding inside directors and outside directors?

• A) Neither an inside director nor an outside director may be an officer of the corporation of which they are a director.
• B) An outside director may be an officer for the corporation for which he or she is a director, but an inside director may not.
• C) An inside director is a person who is also an officer of the corporation, while an outside director is not.
• D) An outside director may not be a director of any other corporation.
• E) An inside director must be a resident of the state of incorporation.

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Definitions:

Confederal

A confederal system, also denoted, is a political structure where independent states join together for certain purposes but maintain their sovereignty, often seen in the handling of common defense or foreign policy.

Sovereign Powers

The ultimate authority or power of a state to govern itself or another state, including making and enforcing laws, without external interference.

Central Government

The primary government authority of a nation, responsible for national policy and administration.

Federalism

A system of government in which power is divided between a central authority and constituent political units, like states, ensuring a degree of self-governance.