Question

Anita is the retired president of Claddagh College and currently serves on the board of directors of the Patrician Pharmaceutical Company. Anita is considered ________ of the company.
A. an outside director
B. a managing director
C. an inside director
D. a silent partner

Answer 1

Answer:

The correct answer is letter "A": an outside director.

Explanation:

An outside director is a member of the Board of Directors (BoD) of a company that is not an employee either a stockholder of the firm. Publicly traded companies that have a BoD are required to have outside directors to balance the decisions taken by the board. It is believed having outside directors help the board making unbiased decisions.

Answer 2

Answer: a

An outside director

Explanation: An outside director of a company is a director who is not employed by that company but he/she is typically an employee of an associated company.