Which of the following is not a corporate characteristic?
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 statement that the board of directors of the majority of publicly held U.S. corporations consists mainly or entirely of inside directors is actually a corporate characteristic. It means that the majority of directors are also executives or officers within the company. Therefore, the answer is C, as it is not a characteristic that is not true of corporations.

Which of the Following Is Not a Corporate Characteristic