Linda owns and runs her own firm. She also serves on the boards of several companies. Although she does not work for these companies, she attends board meetings, analyzes information, and tries to act in the best interests of their shareholders. Linda is an example of an outside director.

Question

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Outside directors are not employees of the firm. They frequently are senior executives from other firms or full-time professionals. Outside directors are appointed to a board and serve on several boards simultaneously. Given their independence, they are more likely to watch out for the interests of shareholders.

Linda Owns and Runs Her Own Firm