An Independent Outside Director

question 61

Multiple Choice

An independent outside director:

• A) is defined as a company employee who has no management responsibilities outside of the board.
• B) cannot serve as the board chairman.
• C) is prohibited from owning shares of the firm.
• D) can be a shareholder as long as he/she holds no management position in the firm outside of the board.

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Definitions:

New Possibilities

Emerging opportunities or prospects that have the potential to be explored or developed in business, technology, or personal growth.

Product Development

The entire process of bringing a new product to the market, from idea conception to release.

Suspending Disbelief

Temporarily accepting as plausible or realistic something that is fictional or unreal, often used in storytelling or entertainment.

Dropping Constraints

The process of eliminating restrictions or limitations that hinder progress or flexibility in a project, task, or strategy.