Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A)Researchers have hypothesized that boards with a majority of outside directors are better monitors of managerial effort and actions.
• B)Studies have found that firms with independent boards make fewer value-creating acquisitions but are more likely to act in shareholders' interests if targeted in an acquisition.
• C)One early study showed that a board was more likely to fire the firm's CEO for poor performance if the board had a majority of outside directors.
• D)Although the firm's stock price increases on the announcement of its addition of an independent board member,the increased firm value appears to come from the potential for the board to make better decisions on acquisitions and CEO turnover rather than from improvements in the firm's operating performance.

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Definitions:

Treat Newborns

The medical and care practices involved in ensuring the health and well-being of newly born infants.

Cost

The expenditure of resources, such as money, time, or effort, incurred in the pursuit or acquisition of goods, services, or outcomes.

Benefits

Advantages or positive effects that are derived from a particular action or policy.

Rational Autonomy

The capability of individuals to make reasoned, self-governed choices free from external constraints or coercion.