Which of the Following Is True in Regard to Outside

question 34

Multiple Choice

Which of the following is true in regard to outside directors?

• A)The trend around the world is to introduce fewer outside directors.
• B)In the United States, less than a half century ago, most boards were made up entirely or largely of outside directors.
• C) Many U.S. firms are now favoring a board that is entirely made of people who are insiders due the need for people who can understand the increasing complexity of MNEs.
• D) Academic research has failed to empirically establish a link between the outsider/insider ratio and firm performance.

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Definitions:

IFRS 16

The International Financial Reporting Standard dictating lease accounting, requiring lessees to recognize nearly all leases on the balance sheet.

Lease Agreements

Contracts that outline the terms under which one party agrees to rent property owned by another party.

Technical Obsolescence

Technical obsolescence occurs when a product or component becomes outdated or less useful due to technological advancements, not because of physical wear.

Economic Conditions

The overall state of a country or region's economy, characterized by factors like GDP growth, unemployment rate, and inflation.