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:

Frequently

Happening or occurring at short intervals or regularly.

Middle-Aged People

Middle-aged people are individuals who are in the middle phase of life, typically defined as aged between 40 to 65 years, often experiencing significant life transitions and adjustments in health, family, and work.

Strong Bond

A powerful emotional or physical connection between individuals or entities.

Objectively

In a manner that is not influenced by personal feelings or opinions, in a way that is based on facts.