One Means That Is Considered to Improve the Effectiveness of Outside

question 78

Multiple Choice

One means that is considered to improve the effectiveness of outside directors is:

• A) mandating that all outside directors be drawn from government or academia rather than industry.
• B) requiring that outside directors be former executives of the firm.
• C) requiring outside directors to own significant equity stakes in the firm.
• D) requiring that outside directors act objectively and have no ownership interest in the firm.

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Definitions:

Equality Norm

A principle or standard within social groups that advocates for equal rights, opportunities, and treatment for all members, often guiding behavior and decision-making in group settings.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Bilateral Threats

A situation or scenario in which two or more countries or parties pose mutual, reciprocal threats to each other, often in a geopolitical context.

Participants

Individuals who take part in a study, experiment, or any type of group activity or event.