ITPEC IP April 2021 Question 78
ITPEC IP April 2021 — Question 78 of 100
Appointing outside directors strengthens independent monitoring and supervision of management decisions. Directors not involved in daily execution can question executives objectively, contribute external expertise, and reduce conflicts of interest at board level.
Answer (c)
Why not others:
- monitoring office entry does not evaluate management decisions
- private investigation of conduct is not a normal board-governance mechanism
- law graduates may add expertise to internal audit but do not themselves provide independent board oversight
Key rule: Corporate governance is strengthened through independent outside directors who oversee executive management.
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