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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