Question

The board of a U.S. corporation usually includes A. outside directors. B. nonminusexecutive employees of the corporation. C. executives of competitors. D. All of the above.

Answer 1

Answer:

Option A. Outside directors

Explanation:

Many firms adopted a two-tier hierarchy of the corporate keeping in view the corporation of the shareholders for their interest.

The first tier included the board of directors which is elected by the stock holders and the second tier includes the upper management which in turn are hired by the board.

The board of directors is further bifurcated into two types of representatives out of which the first type is inside directors which the company selects from within like CEO of the company. The other type is the OUTSIDE DIRECTORS  which are selected from outside the company and are not dependent on the company.