Lothian Has Asked Five of His Friends to Serve on the Board

question 21

Multiple Choice

Lothian has asked five of his friends to serve on the board of director of his new corporation. Why is this not a good idea?

• A) Friends are too dispassionate about the operations of the corporation.
• B) Friends are unlikely to disagree with the owner on matters brought before the board.
• C) Only stockholders can elect the board of directors so it is illegal for the owner to invite friends.
• D) Friends will find out too much about Lothian's personal business.

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