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One Means That Is Considered to Improve the Effectiveness of Outside

Question 12

Multiple Choice

One means that is considered to improve the effectiveness of outside directors is


A) mandating that all outside directors be drawn from government or academia rather than industry.
B) requiring that outside directors be former executives of the firm.
C) requiring outside directors to own significant equity stakes in the firm.
D) requiring that outside directors be truly objective by having no ownership interest in the firm.

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