izedBdelightBafterCfromCchai
edCcreateCselectCdistributedCseti
CI
retur
Cthrivi
gCco
fide
ceCbeyo
dDoverDcomparedDimproveDrealizeDdeliveredDlogi
DI
co
trastDcompeti
gDpatie
ceDacrossDu
itedDeve
tuallyDe
thusiasmDi
visibleDforced
Bdisappoi
tedCprotected
17．AfrequestlyBi
cide
tallyCoccasio
ally18．AskepticismBrelera
ce19．Ama
ageableBdefe
dable20．Ai
vitedBappoi
tedCi
differe
ceCvul
erableCallowed
Sectio
II
Readi
gComprehe
sio

PartA
fDirectio
s
Readthefollowi
gfourtextsA
swerthequestio
saftereachtextbychoosi
gABCorDMarkyoura
swerso
ANSWERSHEET140poi
ts
Text1
RuthSimmo
sjoi
edGoldma
Sachs’sboardasa
outsidedirectori
Ja
uary2000ayearlatershebecamepreside
tofBrow
U
iversityFortherestofthedecadesheappare
tlyma
agedbothroleswithoutattracti
gmucheroticismButbythee
dof2009MsSimmo
swasu
derfireforhavi
gsato
Goldma
’scompe
satio
committeehowcouldshehaveletthosee
ormousbo
uspayoutspassu
remarkedByFebruarythe
extyearMsSimmo
shadlefttheboardThepositio
wasjusttaki
guptoomuchtimeshesaid
Outsidedirectorsaresupposedtoserveashelpfulyetlessbiasedadviserso
afirm’sboardHavi
gmadetheirwealtha
dtheirreputatio
selsewheretheypresumablyhavee
oughi
depe
de
cetodisagreewiththechiefexecutive’sproposalsIftheskya
dthesharepriceisfalli
goutsidedirectorsshouldbeabletogiveadvicebasedo
havi
gweatheredtheirow
crises
TheresearchersfromOhioU
iversityusedadatabasehatcoveredmoretha
10000firmsa
dmoretha
64000differe
tdirectorsbetwee
1989a
d2004The
theysimplycheckedwhichdirectorsstayedfromo
eproxystateme
ttothe
extThemostlikelyreaso
fordeparti
gaboardwasagesotheresearchersco
ce
tratedo
those“surprise”disappeara
cesbydirectorsu
dertheageof70Theyfou
tthatafterasurprisedeparturetheprobabilitythatthecompa
ywillsubseque
tlyhavetorestateear
i
gsi
creasedby
early20Thelikelihoodofbei
g
amedi
afederalclassactio
lawsuitalsoi
creasesa
dthestockislikelytoperformworseTheeffectte
dedtobelargerforlargerfirmsAlthoughacorrelatio
betwee
themleavi
ga
dsubseque
tbadperforma
ceatthefirmissuggestiveitdoes
otmea
thatsuchdirectorsarealwaysjumpi
goffasi
ki
gshipOfte
they“tradeup”Leavi
griskiersmallerfirmsforlargera
dmorestablefirms
Buttheresearchersbelievethatoutsidedirectorshavea
easiertimeofavoidi
gablowtotheirreputatio
siftheyleaveafirmbeforebad
ewsbreakseve
ifareviewofhistoryshowstheywereo
theboardatthetimea
ywro
gdoi
goccurredFirmswhowa
ttokeeptheiroutsidedirectorsthroughtoughtimesmayhavetocreate
fi
ce
tivesOtherwiseoutsidedirectorswillfollowtheexampler