As a result of regulations by the Securities and Exchange Commission and the stock exchanges, the boards of directors of the great majority of publicly held corporations consist primarily of outside directors, and these corporations have audit committees of outside directors.

Question

Quizplus · Accepted Answer

This statement is true. The SEC and stock exchanges require publicly held corporations to have a certain number of outside directors on their board and to have an audit committee composed of outside directors to ensure independence and oversight of financial reporting.

As a Result of Regulations by the Securities and Exchange