PRC-3 · Chapter 2 · Question 7 of 61
To ensure good corporate governance, a company brings in outside experts to sit on the board who do not work for the company daily. What is the primary benefit of this action?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It prevents executive directors from dominating decisions with personal interests
Explanation
Independent Non-Executive Directors (NEDs) provide objective oversight and prevent the company from being dominated by the personal interests of executive directors.
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