Regarding Board Size,researchers Have Found That

question 3

Multiple Choice

Regarding board size,researchers have found that:

• A)smaller boards are associated with greater firm value and performance,since small groups make better decisions than larger groups.
• B)smaller boards are associated with lower firm value and performance,since small groups are more likely to be compromised by connections to management.
• C)larger boards are associated with greater firm value and performance,since larger boards tend to have directors with a more diverse range of backgrounds and talents.
• D)larger boards are associated with lower firm value and performance,since larger groups are more likely to be compromised by connections to management.

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Definitions:

Tax Revenue

The financial gains obtained by governments from tax collection.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unachievable.

Excess Burden

Excess Burden, also known as deadweight loss, is the cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Nonneutral Tax

A tax that impacts differently on different types of economic activities, influencing the allocation of resources.