Which statements about boards of directors are correct?

Question

Quizplus · Accepted Answer

B is correct as one of the main purposes of outside directors is to provide a system of checks and balances and balance power within the board.

C is correct as one of the potential problems of inside directors, who are often executives in the company, is that they may prioritize the interests of the CEO or company over those of shareholders.

A is incorrect as outside directors are individuals who do not have any current ties to the company or its management.

D is incorrect as there is currently a lack of diversity on many boards of directors, with a majority of members being male and white.

E is incorrect as outside directors may still have personal connections or relationships with the CEO or members of management, and may not always provide completely impartial opinions.

Which Statements About Boards of Directors Are Correct