Many firms operate under the assumption that _____________ can better safeguard shareholder interests.

Question

Quizplus · Accepted Answer

Outside directors, who are not affiliated with the company and are independent, can better safeguard shareholder interests as they are not influenced by the management or internal politics of the company. They have a duty to act in the best interests of the shareholders and provide oversight and accountability to the company's management. Inside directors, management members of the board, and interlocking directors may have conflicts of interest and may not always act in the best interest of the shareholders.

Many Firms Operate Under the Assumption That _____________ Can Better