1. Which one of the following statements is TRUE?

a. In a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.

b. A classified board is one in which an announcement requesting applications for board members appears in the newspaper.

c. Since outside directors have no other connection with the firm, they are indebted to the CEO for putting them on the board.

d. Inside directors are more concerned with shareholders' interests since they are more closely concerned with firm operations.

e. An outside director is a board member who has no other affiliation with the company.

2. Which one of the following statements is TRUE?

a. An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.

b. In an agency relationship, the agent delegates authority to the principal.

c. An example of an agency relationship is when a supervisor hires a forklift operator.

d. An agency relationship is when a principal works for an agent.

e. An agency relationship is when a principal hires an agent to perform a service and gives them decision-making authority.