Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)In addition to the evidence that board independence matters for major activities such as firing CEOs and making corporate acquisitions,researchers have found a strong connection between board structure and firm performance.
• B)Theoretical and empirical research support the notion that the longer a CEO has served,especially when that person is also chairman of the board,the more likely the board is to become captured.
• C)Most firms that have just gone public,either as young companies or as older firms returning to public status after a leveraged buyout (LBO),choose to start with smaller boards.
• D)Boards tend to grow over time as members are added for various reasons.For example,boards are often expanded by one or two seats after an acquisition to accommodate the target CEO and perhaps one other target director.

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Definitions:

Personal References

Individuals who can provide testimonies or vouch for one's character, abilities, and ethics, usually not from a direct work relation.

Too Candid

Describes someone who is exceedingly straightforward or unreserved in their speech, potentially to a fault.

Overused

A term describing something utilized too frequently to the point it may lose effectiveness or value.

Positive Points

Merits or advantages awarded in a system, often used to acknowledge accomplishments or desired behaviors.