When outsiders are added to insider-dominated boards, C. CEO dismissal is less l

Question

When outsiders are added to insider-dominated boards, C. CEO dismissal is less likely when performance is poor 1. insiders are more likely to press for corporate restructuring. o insiders are likely to retain their relative influence on the management of the firm. C None of the above. 1 points QUESTION 38 Which of the following might represent the goals of customers? C 1. The company should provide high quality products and services at the most reasonable prices possible. The company should maintain a healthy financial posture and a policy of on-time payment of debt C C The company should produce a higher-than-average return on equity C The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes 1 points QUESTION 39 1. Which of the following might represent the goals of shareholdersi? The company should provide high quality products and services at the most reasonable prices possible. C The company should maintain a healthy financial posture and a policy of on-time payment of debt.

Explanation / Answer

Third option is right, insider are likely to retain influence on the firm as it is dominated by the insiders. First option is right one. Company should provide high quality product in reasonable price. Third option is right, company should provide higher than average return on equity. Right option is two, cultural view. Decision should be based on cultural view.

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