All of the following are principles of good organizational governance,as established by Business Week,except:
A) no directors do business with the company or accept consulting or legal fees from the firm.
B) the audit, compensation and nominating committees are made up solely of outside directors.
C) each director owns a large equity stake in the company, excluding stock options.
D) at least two directors are current or former company executives.
E) the CEO is not also the Chairperson of the Board.

Question

Quizplus · Accepted Answer

Business Week does not recommend having current or former company executives as directors, as this may create conflicts of interest. The other principles listed (A, B, C, and E) are all recommended by Business Week for good organizational governance.

All of the Following Are Principles of Good Organizational Governance,as