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:

Future Events

Occurrences or happenings that are yet to take place, often the subject of predictions or anticipations.

Disasters

Events that cause significant harm, destruction, or death to a large number of people, often resulting from natural phenomena or human actions.

Perceived Control

An individual's belief in their ability to influence events and outcomes in their own lives.

Commercial Air Flights

Flights operated by airlines for the purpose of transporting passengers or cargo as a business.