In Choosing Sides Concerning CEO Duality,two Schools of Thought Exist

question 81

Multiple Choice

In choosing sides concerning CEO duality,two schools of thought exist.Which of the following would not be a consideration for the agency theory school of thought?

• A) CEO duality complicates the issue of CEO succession.
• B) CEO duality reinforces popular doubts about the legitimacy of the system as a whole.
• C) CEO duality can create conflicts of interest that can negatively affect the interests of the shareholders.
• D) Firm performance typically improves under CEO duality.

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Definitions:

Internal Control Systems

Methods and systems adopted by an organization to maintain the accuracy of its financial and accounting records, ensure responsibility, and deter deceit.

Efficient Operations

Activities optimized to use the least amount of resources to achieve the desired level of output.

Protecting Assets

Implementing security measures to safeguard a company’s tangible and intangible assets from loss, theft, or damage.

Reliable Accounting

Accounting practices that are consistently accurate and trustworthy, providing a true and fair view of an organization's financial situation.