Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) A board is said to be classified when its monitoring duties have been compromised by connections or perceived loyalties to management.
• B) Even the most active independent directors spend only one or two days per month on firm business, and many independent directors sit on multiple boards, further dividing their attention.
• C) On a board composed of insider, gray, and independent directors, the role of the independent director is really that of a watchdog.
• D) Because independent directors' personal wealth is likely to be less sensitive to performance than that of insider and gray directors, they have less incentive to closely monitor the firm.

Distinguish between internal and external leadership actions in managing team dynamics.

Evaluate the importance of clear goals, norms, and structures in achieving team excellence.

Understand the concept and implications of heterarchy in team power dynamics.

Recognize the necessity of securing organizational support and resources for team success.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, which is reinvested in the business.

Annual Revenues

The total amount of money received by a company for goods sold or services provided during a fiscal year.

Net Income

The concluding profit figure for a company, arrived at by deducting every type of expense and tax from its complete revenue.