Which one of the following statements is TRUE?
A) Inside directors are likely to side with the CEO since they are employees.
B) In a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.
C) Inside directors are more concerned with shareholders' interests since they are more closely concerned with firm operations.
D) Since outside directors have no other connection with the firm, they are indebted to the CEO for putting them on the board.
E) The more members of a board of directors, the better its function.

Question

Quizplus · Accepted Answer

Inside directors are more likely to side with the CEO because they are part of the company's management team and may have interests aligned with those of the CEO, rather than being independent or outside directors who are supposed to provide unbiased oversight.

Which One of the Following Statements Is TRUE