Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) When the CEO is also chairperson 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:

Defective Goods

Items that fail to meet quality standards due to flaws or faults, rendering them unsaleable or requiring correction.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rate, repayment schedule, and other terms of a credit agreement.

Accounts Payable

Amounts a company owes to its creditors for goods or services that have been delivered or used but not yet paid for.

FOB Shipping Point

This term represents a shipping agreement where the buyer takes responsibility for the goods once they are shipped, implying ownership transfer at the seller's location.