Regarding the Role of Non-Executive Directors, the Recommendations of the Higgs

question 11

Multiple Choice

Regarding the role of non-executive directors, the recommendations of the Higgs Report included:

• A) Non-executive directors should meet as a group at least once a year without executive directors being present.
• B) The board should inform shareholders why they believe an individual should be appointed as a non-executive director and how they meet the requirements of the role.
• C) The role of non-executive directors should not have accountability to shareholders.
• D) A full-time executive director should not hold more than one non-executive directorship or become chairman of a major corporation.

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Definitions:

Differentiated Product

A product that is distinguished from similar products offered by competitors because of unique characteristics or features.

Homogeneous Product

A product that is identical or almost identical in features, functions, and quality across different suppliers.

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that consumers are willing to buy, without any leftover surplus or shortage.

Collusion

Collusion is an agreement among firms in a market to coordinate actions to achieve a higher price or market control, resulting in less competition.