ITPEC IP April 2025 Question 77
ITPEC IP April 2025 — Question 77 of 100
Increase the number of highly independent outside directors — independent oversight strengthens corporate governance.
Outside directors who are sufficiently independent can supervise management, challenge conflicts of interest, represent broader stakeholder interests, and improve transparency and accountability in board decisions. These are direct governance functions.
Answer (c)
Why not others:
- (a) is a human-resources and diversity initiative
- (b) is an acquisition used for business expansion
- (d) is portfolio restructuring based on profitability
These may affect company performance but do not directly strengthen the oversight structure.
Key rule: Corporate governance concerns the framework for directing, supervising, and holding management accountable.
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