Question

In the context of boards of directors, a(n) ________ director is someone who is not employed by the firm.

a) outside
b) impartial
c) external
d) inside
e) peripheral

Answer 1

An outside director is a non-employee board member who brings an impartial view to the company's decision-making process. They offer fresh insights and help ensure a balanced perspective in board discussions.

Step-by-step explanation:

In the context of boards of directors, a non-employed individual who serves on the board is commonly referred to as an outside director. This type of director is distinguished from an inside director, who typically is an employee, officer, or stakeholder of the company. Outside directors are valuable for their ability to provide impartial and external perspectives, potentially leading to more objective decision-making on behalf of the company's shareholders.