To Avoid Short-Termism, the Board of a Company Should

question 42

Multiple Choice

To avoid short-termism, the board of a company should:

• A) ensure that the CEO's pay is tied to achieving innovation and efficiency.
• B) focus entirely on quarterly earnings.
• C) focus on immediate pay-offs on investments.
• D) avoid ownership-based governance.

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Definitions:

Ascomycota

A phylum of fungi characterized by the formation of spores in sac-like structures called asci, which includes many medically and industrially important species.

Basidiomycota

A large division of fungi, commonly known as club fungi, that includes mushrooms, toadstools, puffballs, and shelf fungi, characterized by producing spores on basidia.

Karyogamy

The final phase of the sexual cycle of fungi and algae, where the nuclei of two mating types or gametes fuse together to form a zygote.

Basidium

A microscopic, spore-producing structure found on the gills under the cap of a mushroom, characteristic of Basidiomycota fungi.