Which of the Following Is True Regarding CEO Duality

question 40

Short Answer

Which of the following is true regarding CEO duality?
a. From an agency theory standpoint, if the board is to supervise agents such as the CEO, it seems imperative that the board be chaired by the same individual.
b. In US firms with CEO duality, the trend now is to appoint a lead independent director, who chairs the sessions held by outside directors that do not involve company executives.
c. A corporation led by two top leaders-a board chairman and a CEO - will at least have unity of command and experience less top-level conflict.
d. East Asia and Latin America where most firms have concentrated family ownership and control, there is less CEO duality.
e. Firms around the world are being pressured to combine the two top jobs.

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Definitions:

Cell Plate

The structure that forms during cytokinesis in plants, separating the two daughter cells produced by mitosis.

Plant Cells

Basic units of life in organisms of the kingdom Plantae, characterized by a rigid cell wall, chloroplasts, and central vacuoles.

Cyclins

Regulatory proteins whose levels oscillate during the cell cycle; cyclins associate with cyclin-dependent kinases to form cyclin-Cdk complexes.

Cdks

Cyclin-dependent kinases, enzymes that regulate the cell cycle through phosphorylation of target proteins.