Question

which one of the following statements is not true?companies with interlocking boards of directors have directors that serve on both boards.and interlocking board has a negative influence on the quality of corporate governance.an effective board normally has the ceo as its chairman.an effective board normally has a majority of outside directors with business expertise.none of the above.

Answer 1

The correct answer is that an effective board normally has the CEO as its chairman.

Step-by-step explanation:

The correct answer is: An effective board normally has the CEO as its chairman.

While having the CEO as the chairman of the board is a common practice in many organizations, it is not always the case. Some companies choose to separate the roles of the CEO and the chairman to ensure a proper balance of power and independence in decision-making. This separation can help prevent conflicts of interest and improve corporate governance.

For example, having an independent chairman can provide oversight and support for the CEO's actions, ensuring that the company's interests are properly represented and that decisions are made in the best interest of the shareholders.