On an Organization's Board of Directors

question 40

Multiple Choice

On an organization's board of directors,

• A)inside directors are supposed to be elected from outside the organization and outside directors may be members of the firm.
• B)inside directors must work for the company and outside directors are also members of the firm.
• C)inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm.
• D)inside directors are always retired executives and outside directors typically are employees.
• E)inside directors must work for the organization and outside directors are paid members of the organization.

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Definitions:

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.

Productivity

The efficacy and efficiency with which input resources (such as time, labor, and materials) are converted into outputs, such as goods or services.

Service Quality

The assessment of how well a delivered service matches customer expectations, often a critical component of customer satisfaction in business.

Profit Sharing

A company program in which a portion of the company's profits is distributed to its employees, often based on their performance and the company's earnings.