ITPEC IP April 2026 Question 75
ITPEC IP April 2026 — Question 75 of 100
Appoint outside directors — independent board members strengthen objective monitoring of management decisions.
Outside directors can challenge executives, represent broader shareholder interests, and reduce conflicts because they are not part of day-to-day management.
Answer (c)
Why not others: (a) monitors physical entry, not decision quality; (b) ad hoc private investigation is not a governance structure; (d) legal education alone does not ensure the internal audit department or board independently supervises management.
Key rule: Corporate governance is strengthened through independent oversight, clear accountability, and checks on executive decision-making.
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