A Board of Directors Is Said to Be Captured When

question 21

Multiple Choice

A board of directors is said to be captured when:

• A)a majority of the directors are independent directors.
• B)a majority of the directors are outside directors.
• C)its monitoring duties have been compromised by connections or perceived loyalties to management.
• D)when the CEO also serves as chairman of the board of directors.

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Definitions:

Immersion

The state of being deeply engaged or involved in a particular activity or environment.

Inducing Convulsions

A medical procedure that involves deliberately provoking convulsions or seizures, often used for therapeutic purposes in the past, such as electroconvulsive therapy for certain mental disorders.

Electric Shock

The passage of electrical current through a part of the body, causing a sudden and often painful reaction, which can be used in various medical treatments or occur accidentally.

Sudden Shock

An unexpected and rapid physiological response to a surprising and often traumatic event.