Outside Directors Are More Likely to Watch Out for the Interests

question 92

Multiple Choice

Outside directors are more likely to watch out for the interests of shareholders of their firm because

• A) they are more likely to benefit from using inside information to trade stocks.
• B) they do not have the safety of serving on the boards of other firms.
• C) they are part-time employees of the firm.
• D) they have more independence than inside directors.