Research Suggests That Boards of Directors Tend to Look Outside

question 108

Multiple Choice

Research suggests that boards of directors tend to look outside the firm for the next CEO under which of the following circumstance?

• A) when the company is prosperous
• B) when the company is having R&D challenges
• C) when the company is in trouble
• D) when the company needs to follow a stability strategy
• E) when the company needs to expand in order to continue growing

---

Definitions:

Mortgages

Loans specifically provided for the purchase of property or real estate, where the property itself is used as collateral for the loan.

Social Stratification

The structured form of social inequality within a society, categorized by hierarchies of class, race, and gender, among others, impacting access to resources and power.

American Dream

The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society where upward mobility is possible for everyone.

Just-World Hypothesis

Argument that people have a deep need to see the world as orderly, predictable, and fair, which creates a tendency to view victims of social injustice as deserving of their fates.