Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)When the CEO is also chairman of the board,the nominating letter offering a seat to a new director comes from her.This process merely serves to reinforce the sense that the outside directors owe their positions to the CEO and work for the CEO rather than for the shareholders.
• B)Over time,most of the independent directors will have been nominated by the CEO.Even though they have no business ties to the firm,they are still likely to be friends or at least acquaintances of the CEO.
• C)Researchers have found the surprisingly robust result that larger boards are associated with greater firm value and performance.
• D)The CEO can be expected to stack the board with directors who are less likely to challenge her.

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Definitions:

Achromatic Vision

A condition characterized by a limited ability to see colors, often referred to as color blindness.

Color Deficient

A condition where an individual has a reduced ability to see colors or differentiate between certain shades of colors, commonly referred to as color blindness.

Protanopia

A type of color blindness where there is a deficiency in seeing red colors.

Pituitary

A small endocrine gland attached to the base of the brain; the “master” gland.