Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)A board is said to be classified when its monitoring duties have been compromised by connections or perceived loyalties to management.
• B)Even the most active independent directors spend only one or two days per month on firm business,and many independent directors sit on multiple boards,further dividing their attention.
• C)On a board composed of insider,gray,and independent directors,the role of the independent director is really that of a watchdog.
• D)Because independent directors' personal wealth is likely to be less sensitive to performance than that of insider and gray directors,they have less incentive to closely monitor the firm.

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Definitions:

Micro-Macro Linkage

refers to the ways in which small-scale individual actions and interactions connect with large-scale social structures and processes.

Metatheoretical

Pertaining to the analysis, discussion, or critique of the foundational assumptions, principles, and methods that underlie a particular theory or field of study.

Micro-Macro Linkage

The relationship and interplay between individual actions and behaviors (micro-level) and larger societal structures and processes (macro-level).

European

Pertaining to or originating from Europe, often referring to the cultures, languages, or individuals from European countries.