Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 24

Which of the following situations would not limit a director's autonomy, according to Levitt? (a) "Inside" directors who are company employees.
(b) "Outside" directors who are either friends or relatives of the company's CEO.
(c) "Outside" directors who are associated with competing businesses or had been involved in business transactions with the corporation and earned lucrative fees.
(d) "Outside" directors who do not have a stake in the company.