Which Statements About Boards of Directors Are Correct

Multiple Choice

Which statements about boards of directors are correct?

A) Outside directors are employees or people who have other ties to the company.
B) Outside directors provide a method of balancing power and a system of checks and balances to help prevent corruption.
C) The potential problem of inside directors is that they are often beholden to the CEO and may agree with whatever the executive wants.
D) Board members are balanced in gender and ethnicity.
E) Outside directors are rarely friends of a company's CEO, and thus provide fair and impartial opinions about the business's operations.