Which of the Following Statements Regarding Outside Members of Boards

question 58

Multiple Choice

Which of the following statements regarding outside members of boards of directors is accurate?

• A) Outside directors, as compared to insiders, tend to focus less on monitoring a firm's economic performance than on other measures of firm performance and are more likely than insider members to dismiss CEOs following poor performance.
• B) Outside directors, as compared to insiders, tend to focus less on monitoring a firm's economic performance than on other measures of firm performance and are less likely than insider members to dismiss CEOs following poor performance.
• C) Outside directors, as compared to insiders, tend to focus more on monitoring a firm's economic performance than on other measures of firm performance and are less likely than insider members to dismiss CEOs following poor performance.
• D) Outside directors, as compared to insiders, tend to focus more on monitoring a firm's economic performance than on other measures of firm performance and are more likely than insider members to dismiss CEOs following poor performance.

---

Definitions:

Technological Interdependence

A state where the operations, functions, or successes of entities (such as organizations or countries) are mutually dependent on technology.

Change Competency

An organization's ability to effectively manage and adapt to changes in the environment, markets, technologies, or internal structures.

Importing Foodstuffs

The process of bringing food products into one country from another to meet demand that cannot be met by local production.

Suppliers Network

A system or group of interconnected businesses that supply goods or services to an organization.