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Rochelle Dixon is delivering a presentation on best practices for corporate governance. Two of her recommendations are as follows:
Statement 1: To avoid the potential for harming shareholders’ interests by wasting company resources, the Board of Directors should get management’s approval before it hires outside consultants.
Statement 2: The more members a Board of Directors has, the more likely it is to represent shareholders’ interests fairly.
Are Dixon’s statements CORRECT?
A.
B.
C.
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