What is an outside director?
A) the CEO that is selected by the corporation's board of directors
B) a member of the board of directors who does not have a direct management role in the firm
C) a member of a corporate board of directors that is also a manager of the business
D) a board of director chair who has been in the job for less than one year
Question 2
What is the principal-agent problem? What are three ways in which firms try to cope with it?
What will be an ideal response?