Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)When the CEO is also chairman of the board,the nominating letter offering a seat to a new director comes from her.This process merely serves to reinforce the sense that the outside directors owe their positions to the CEO and work for the CEO rather than for the shareholders.
• B)Over time,most of the independent directors will have been nominated by the CEO.Even though they have no business ties to the firm,they are still likely to be friends or at least acquaintances of the CEO.
• C)Researchers have found the surprisingly robust result that larger boards are associated with greater firm value and performance.
• D)The CEO can be expected to stack the board with directors who are less likely to challenge her.

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Definitions:

Disorders

Medical or psychological conditions that disrupt normal functioning.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a guideline used for diagnosing and classifying mental disorders.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior.

Diagnosing

The process of identifying a disease or condition from its symptoms and signs.