Which of the following statements is true about an outside director?
A) An outside director of an organization should have worked with the organization for at least 10 years at some point during his career.
B) Outside directors tend to dominate boards because as compared to inside directors, these people have better access to most of the information about the company.
C) An outside director should be a current employee of the organization.
D) An outside director of an organization can be an executive of some other company.

Question

Quizplus · Accepted Answer

An outside director of an organization can be an executive of some other company. This is because the main purpose of having an outside director is to bring in fresh perspective and diversity of experience from outside the organization. It is not necessary for the outside director to be a current employee or to have worked with the organization for a certain period of time. However, it is important that the outside director is independent and does not have any conflicts of interest with the organization.

Which of the Following Statements Is True About an Outside