Which of the Following Is NOT a Trend in Corporate

question 93

Multiple Choice

Which of the following is NOT a trend in corporate governance expected to continue?

• A) Institutional investors are becoming active on boards.
• B) Boards are getting more involved in shaping company strategy.
• C) Boards are getting larger.
• D) Shareholders are demanding that directors and top managers own more than token amounts of stock in the corporation.
• E) Outside directors are taking charge of annual CEO evaluations.

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Definitions:

Status Quo Bias

The tendency for people to prefer things to stay the same by doing nothing or sticking with a decision made previously.

Prospect Theory

A psychological theory that describes how people make decisions based on the potential value of losses and gains rather than the final outcome.

Endowment Effect

A psychological phenomenon where people ascribe more value to things merely because they own them.

Prospect Theory

A behavioral economic theory that describes how people make decisions under conditions of risk and uncertainty, prioritizing losses differently from gains.