Research Suggests That Boards of Directors Perform Better If

question 32

Multiple Choice

Research suggests that Boards of Directors perform better if:

• A) the CEO is also the chairperson of the Board of Directors.
• B) the Bard includes employees as voting members.
• C) the Board is homogenous in composition.
• D) outside directors own significant equity in the organization.

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Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted by a specific rate of return.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period of time, reflecting the cost of borrowing or the return on savings.

Consumes

The act of using up a resource or goods in the process of satisfying human needs or wants.