Question

which one of the following corporate board characteristics usually improves corporate governance?the board has a majority of outsiders who have experience and aren't too busy.ceo is the chairman of the board.the board is as large as is possible.board members are paid at a rate higher than their peers and their payment is mostly cash.the board has a majority of insiders from company management on it who bring first-hand knowledge of how the company operates.

Answer 1

The board characteristic that usually improves corporate governance is when the board has a majority of outsiders who have experience and aren't too busy. This promotes transparency and accountability.

Step-by-step explanation:

The board characteristic that usually improves corporate governance is when the board has a majority of outsiders who have experience and aren't too busy. This means that the board members are independent from the company and bring fresh perspectives and expertise. They are not overly involved in day-to-day operations and can focus on long-term strategic decisions.

On the other hand, having the CEO as the chairman of the board may create a conflict of interest and compromise the independence of the board. Similarly, having a board that is as large as possible may lead to difficulties in decision-making and coordination.

Overall, having a majority of independent outsiders on the board helps to ensure that decisions are made in the best interest of the shareholders and promotes transparency and accountability.