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:

Erikson

Refers to Erik Erikson, a psychologist known for his theory on psychosocial development across eight stages of human life.

Individuality

Consists of two dimensions: self-assertion, the ability to have and communicate a point of view; and separateness, the use of communication patterns to express how one is different from others.

Self-assertion

The action of confidently and forcefully expressing one's opinions, needs, and rights without infringing on the rights of others.

Separateness

The state or condition of being distinct, separate, or not connected.