ITPEC IP April 2024 Question 74
ITPEC IP April 2024 — Question 74 of 100
Appointing outside directors strengthens independent monitoring and supervision of management decisions. Directors who are not part of day-to-day executive management can bring external expertise, question assumptions, identify conflicts of interest, and represent the interests of shareholders and other stakeholders. Their board role is structurally connected to corporate governance.
Answer (c)
Why not others:
- (a) monitoring office entry and exit does not supervise the quality or propriety of management decisions
- (b) periodic private investigations are not a normal governance structure
- (d) legal education alone does not guarantee the independence or board authority required to oversee management
Key rule: Corporate governance is strengthened by independent oversight, clear accountability, transparent decisions, and checks on executive power.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.