Which Action Can Be an Adverse Move for Corporate Governance

question 7

Multiple Choice

Which action can be an adverse move for corporate governance?

• A)making the CEO the chairman of the board
• B)decreasing the board size
• C)increasing the seats of independent directors in the board up to 80%
• D)paying board members with stock rather than salary

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Definitions:

Revealed Preferences

The theory that consumers' preferences can be determined by their purchasing habits and behavior rather than through their expressed desires or responses to surveys.

Preferences

The subjective tastes or desires of individuals or entities, which determine their choices among various options.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, contrasting with normal goods.

Price Increase

A rise in the cost of goods or services.