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.
Answer: C
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A) Private Securities Litigation Reform Act B) Market Reform Act C) Bankruptcy Abuse Prevention and Consumer Protection Act D) Securities Enforcement Remedies and Penny Stock Reform Act
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a. True b. False Indicate whether the statement is true or false
Ideally, the opening ofyour business presentation will summarize your key points.
Answer the following statement true (T) or false (F)