Which of the following is not true about corporations in the United States?
A) A relatively small number of corporations own the great bulk of U.S. industrial wealth.
B) The great majority of publicly held corporations have audit committees consisting entirely of outside directors.
C) The board of directors of the majority of publicly held U.S. corporations consist mainly or entirely of inside directors.
D) Corporate governance requirements on publicly held corporations have been imposed by federal legislation.

Question

Quizplus · Accepted Answer

The board of directors of the majority of publicly held U.S. corporations typically consists mainly or entirely of outside directors, not inside directors, to ensure independence and objectivity in governance. This is contrary to option C, making it the incorrect statement about corporations in the United States.

Which of the Following Is Not True About Corporations in the United