Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)In addition to the evidence that board independence matters for major activities such as firing CEOs and making corporate acquisitions,researchers have found a strong connection between board structure and firm performance.
• B)Theoretical and empirical research support the notion that the longer a CEO has served,especially when that person is also chairman of the board,the more likely the board is to become captured.
• C)Most firms that have just gone public,either as young companies or as older firms returning to public status after a leveraged buyout (LBO),choose to start with smaller boards.
• D)Boards tend to grow over time as members are added for various reasons.For example,boards are often expanded by one or two seats after an acquisition to accommodate the target CEO and perhaps one other target director.

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Definitions:

Suicide

The act of intentionally causing one's own death.

Ethical Behavior

Actions and attitudes that conform to professional standards and moral principles, often guided by the goal of doing good and avoiding harm.

Organization

An arranged group of people with a particular purpose, such as a business, government body, or charity.

Code of Standards

A set of guidelines or principles established by an industry or organization to ensure quality and consistency.