One Means That Is Considered to Improve the Effectiveness of Outside

question 12

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 be truly objective by having no ownership interest in the firm.

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Definitions:

War On Terrorism

A global military campaign launched by the United States and allied countries to combat terrorism, especially in response to the September 11 attacks.

EOQ Inventory System

The Economic Order Quantity (EOQ) model is a formula used to determine the optimal quantity of inventory to minimize total inventory costs including holding and ordering costs.

Safety Stock

Inventory kept on hand to protect against shortages due to fluctuations in demand or supply.

Carrying Cost

The total cost of holding inventory, including storage, insurance, and taxes, over a certain period.