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:

Personal Identification

A psychological process whereby an individual aligns their attitudes and behaviors with those of another person or group.

Subordinate

An individual who is under the authority or control of another, often in a workplace hierarchy.

Personalized Power Orientation

A tendency to seek power for personal gain rather than for the benefit of others or the organization.

Personal Loyalty

is the dedication and allegiance an individual has towards another person, group, or organization, impacting decisions and actions based on these strong personal ties.