Which of the Following Statements Is FALSE

question 8

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:

Electoral Power

The ability or capacity of an individual or group to influence the outcome of elections through voting or other means.

U.S. Congress

The bicameral legislature of the federal government of the United States, consisting of two houses: the Senate and the House of Representatives.

State Legislatures

The legislative bodies of individual states in a federal system, responsible for making state laws, setting budgets, and serving as a check on the executive branch.

Cambridge Movement

A civil rights movement in Cambridge, Maryland, during the 1960s, advocating for desegregation and equal rights for African Americans.