Most institutional investors and watchdog groups prefer a large majority of independent directors on a board to avoid ________ while carrying out fundamental responsibilities.
A) information leaks
B) conflicts of interest
C) personality conflicts
D) unnecessary expenses

Question

Quizplus · Accepted Answer

Institutional investors and watchdog groups prefer a majority of independent directors on a board to avoid conflicts of interest, which may arise when directors have personal or business relationships with the company, its management, or other directors. This can compromise their ability to carry out fundamental responsibilities impartially and in the best interests of shareholders.

Most Institutional Investors and Watchdog Groups Prefer a Large Majority