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:

Controlling

The management function that involves monitoring performance, comparing it with goals, and correcting any significant deviations.

Controlling

The process of monitoring and evaluating performance to ensure that organizational goals are being met and making adjustments as necessary.

Surpasses Objectives

Exceeding set goals or targets within a given timeframe or project scope.

Feedforward Control

A management technique that focuses on the regulation of future actions based on current performance trends and forecasts to prevent problems before they arise.