Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A) When the CEO is also chairman of the board, the nominating letter offering a seat to a new director comes from her. This process merely serves to reinforce the sense that the outside directors owe their positions to the CEO and work for the CEO rather than for the shareholders.
• B) Over time, most of the independent directors will have been nominated by the CEO. Even though they have no business ties to the firm, they are still likely to be friends or at least acquaintances of the CEO.
• C) Researchers have found the surprisingly robust result that larger boards are associated with greater firm value and performance.
• D) The CEO can be expected to stack the board with directors who are less likely to challenge her.

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Definitions:

Washington

The capital city of the United States, located in the District of Columbia, or a state in the Pacific Northwest region of the United States.

Montana

A state located in the Northwestern United States, known for its varied terrain ranging from the Rocky Mountains to the Great Plains.

Voluntary Statewide Certification

A non-mandatory credentialing process within a state that recognizes an individual’s qualifications in a certain profession.

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Trained legal assistants who perform various legal tasks and support lawyers in delivering legal services.