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.

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Definitions:

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior being repeated.

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a wanted response.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning, without delving into the underlying psychological causes.

Aversive Conditioning

A behavior conditioning technique in which unpleasant stimuli are associated with undesirable behaviors to discourage those behaviors.