General Electric's Board Has Only One Inside Director, John Flannery

question 91

Multiple Choice

General Electric's board has only one inside director, John Flannery, GE's CEO, who also acts as chairman of the board. This is known as duality. Which of the following statements represents the best argument for this duality in GE?

• A) A CEO is likely to be more responsible because he or she is setting his or her own performance targets.
• B) The CEO might be able to influence the board through setting the meeting agendas.
• C) The CEO possesses invaluable inside information that can help him or her chair the board effectively.
• D) Any CEO will suggest board appointees who are friendly toward him or her.

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Definitions:

Confidence Interval

A breadth of values, taken from statistical examination of a sample, that aims to envelop the value of an unrevealed population trait.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion in a set of values, indicating how much the individual data points diverge from the mean value.

Sample Mean

The average value calculated from a subset of a population.

Confidence Level

The probability that the values of a parameter lie within a specified range of values, indicating the reliability of an estimate.