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:

Full-Scale IQ

A measure of an individual's overall intellectual ability as assessed by standardized intelligence testing, encompassing both verbal and performance scales.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used to indicate how much individuals within a dataset deviate from the mean.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to their age group, typically assessed through standardized tests.

Crystallized Intelligence

The ability to use learned knowledge and experience in problem-solving and adapting to new situations.