Internal and external corporate governance provisions and activities can take many forms, including a classified board. Which of the following best describes this practice?

a. This practice encourages the classification of board members as insiders or outsiders, depending upon their role or relationship with the company.

b. This practice requires that only a fraction of a firms board of directors will be elected in each election.

c. This practice requires that 100% of the members of a firms board of directors be elected in each election.

If you were making recommendations to repair a dysfunctional board of directors, which of the following practices would you suggest be implemented? Check all that apply.

a. Senior managements compensation should include cash and stock options.

b. The CEO should delegate the signing of the companys federal income tax return to the CFO.

c. The companys charter should make hostile takeovers easier to accomplish.

d. Members serving on the boards audit committee should be independent.