Board Members Being Linked to More Than One Company Is

question 34

Multiple Choice

Board members being linked to more than one company is an example of

• A)the stakeholder concept.
• B)the stakeholder model of corporate governance.
• C)interlocking directorate.
• D)conflict of interest.
• E)multiple directorate.

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Definitions:

Incentive Bias

A psychological lean or predisposition towards certain decisions or actions due to promised rewards or incentives.

Survivorship Bias

The error of focusing on the successes or survivors in a group and overlooking those that failed, which can lead to overly optimistic beliefs or conclusions.

Reporting Bias

A tendency to selectively choose or promote certain outcomes, data, or studies over others, which can lead to a distorted view of reality.

Incentive Bias

The tendency of an individual or entity to act in a way that is more favorable for their interests due to the promise of a reward or bonus.