Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) In addition to the evidence that board independence matters for major activities such as firing CEOs and making corporate acquisitions, researchers have found a strong connection between board structure and firm performance.
• B) Theoretical and empirical research support the notion that the longer a CEO has served, especially when that person is also chairman of the board, the more likely the board is to become captured.
• C) Most firms that have just gone public either as young companies or as older firms returning to public status after a leveraged buyout (LBO) choose to start with smaller boards.
• D) Boards tend to grow over time as members are added for various reasons. For example, boards are often expanded by one or two seats after an acquisition to accommodate the target CEO and perhaps one other target director.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Evaluation Apprehension

Anxiety or fear about being judged or assessed by others.

Self-Directed Work Teams

Groups of employees who are given the autonomy and responsibility to manage themselves and their work, including decision-making and problem-solving processes.

Supervisors

Individuals within an organization responsible for overseeing and guiding the performance of a group of employees, ensuring tasks are completed effectively.