Directors Who Are Not as Directly Connected to the Firm

question 42

Multiple Choice

Directors who are not as directly connected to the firm but who have existing or potential business relationships with the firm are called:

• A)gray directors.
• B)independent directors.
• C)advising directors.
• D)inside directors.

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Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used.

Capital Flight

the large-scale exodus of financial assets and capital from a country due to economic instability or unfavorable investment conditions.

Demographic Transition View

A model explaining how changes in birth and death rates can affect the age and growth dynamics of a population over time.

Opportunity Costs

The value of the next best alternative that is foregone when a decision is made.