Outside Members of the Board of Directors Are Usually Chosen

question 112

Multiple Choice

Outside members of the board of directors are usually chosen

• A) because they represent part of the organization's general environment.
• B) to reduce the requirement for inside directors who come from the same industry.
• C) to provide a particular expertise.
• D) to reduce scrutiny by government agencies.
• E) to preclude the conflicts of interest that could arise if top managers from the organization were selected.

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Definitions:

Trade by Bartering

A method of exchanging goods or services directly without using money.

Laissez-Faire

Laissez-faire is an economic philosophy advocating for minimal government intervention in the market, with transactions between private parties being free from tariffs, subsidies, and enforced monopolies.

Government Interference

Actions by the government that affect the market, often with the intention of correcting market failures or achieving a social objective.

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.