The Boards of Directors of Very Large Corporations Are Composed

question 45

Multiple Choice

The boards of directors of very large corporations are composed of people who went to the same prep schools or Ivy League colleges; these connections exemplify what concept?

• A) Network
• B) Hierarchy
• C) Correlation matrix
• D) Group heterogeneity

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Definitions:

Social Comparison

The process by which individuals evaluate their own abilities, achievements, and conditions in comparison to others.

Persuasive Arguments

Reasonings or logics presented with the intent to convince or influence others to adopt a certain belief or take specific action.

Risky Shift

A phenomenon in which group decisions tend to be more extreme, including taking greater risks, than individual decisions.

Groupthink

A psychological phenomenon where the desire for harmony and conformity within a group leads to irrational or dysfunctional decision-making outcomes.