Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)A board is said to be classified when its monitoring duties have been compromised by connections or perceived loyalties to management.
• B)Even the most active independent directors spend only one or two days per month on firm business,and many independent directors sit on multiple boards,further dividing their attention.
• C)On a board composed of insider,gray,and independent directors,the role of the independent director is really that of a watchdog.
• D)Because independent directors' personal wealth is likely to be less sensitive to performance than that of insider and gray directors,they have less incentive to closely monitor the firm.

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Definitions:

Payee

The individual or entity to whom a payment is to be made or who will receive the payment.

Subsequent Holder

An individual or entity that acquires a negotiable instrument after it has been initially issued.

Simple Contracts

Contracts that can be oral or written, not formalized by seal, and recognized by courts if they meet basic requirements like offer, acceptance, and consideration.

Negotiable Instruments

Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer usually not named.