The Most Important Advantage to a Business in Hiring Outside

question 36

Multiple Choice

The most important advantage to a business in hiring outside directors is that

• A) In not being full-time employees, they are more independent than executive directors
• B) In not being involved in day-to-day management, they can have a broad view of the Company
• C) In being wholly paid in stock options, they are more likely to have the same interests as the shareholders
• D) In being most often retired or semi-retired, they have more time to spend directing the business
• E) In not being involved in day-to-day management, they are less likely to act in a fraudulent manner

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Definitions:

Qualitative Variable

A categorical variable that represents types or categories and can be described by names or labels.

High School

An educational institution that provides secondary education, typically for students aged 14 to 18 years old.

Regression Model

A statistical technique that models and analyzes the relationships between a dependent variable and one or more independent variables, used to predict the outcome of the dependent variable.

Number of Predictors

The total count of independent variables used in statistical models to predict an outcome.