Question

In public stock companies, inside directorsA. generally form the lower levels of management in an organization.B. are appointed by shareholders to provide the board with necessary company information.C. are not full-time employees of the firm.D. are more likely to watch out for shareholder's interests than external directors.

Answer 1

Answer:

The correct answer is the option B: are appointed by shareholders to provide the board with necessary company information.

Explanation:

First of all, a public stock company is a type of company whose main characteristic is that the ownership ir organized via shares of stock that are free trade on a stock exchange market

Secondly, an inside director is the name that receives an employee from the company whose main characteristic is thar according to the fact that he is very specialized about the inner working of the company then he might be appointed by a major institutional investor in order to facilitate the interest of that person by acting for best of the company.