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Why Do Inside Directors Often Dominate Outsiders on a Board

Question 47

Multiple Choice

Why do inside directors often dominate outsiders on a board of directors?


A) Insiders can use their position within the management hierarchy to exercise control over the company-specific information that the board receives.
B) They can present information in a way that puts them in a favorable light.
C) They have intimate knowledge of the company's operations, and because superior knowledge and control over information are sources of power.
D) They may be better positioned than outsiders to influence boardroom decision making.
E) All of these are reasons why inside directors often dominate outsiders on a board of directors.

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