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14 votes
14 votes
Having term limits on Boards of Directors for companies forces firms to rotate leadership to get new ideas. It also creates this unintended consequence:

User Chetan Patel
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1 Answer

10 votes
10 votes

The available options are the following:

-Board members serve on multiple boards

-People with knowledge of the firm's history are replaced with those who may not know as much information

-Less frequent board meetings

-Better decisions about important issues

Answer:

-People with knowledge of the firm's history are replaced with those who may not know as much information

Step-by-step explanation:

Considering the available options, the option that appears negative and related to the point being discussed is

"People with knowledge of the firm's history are replaced with those who may not know as much information."

It is straightforward, as changing the board of directors will at some point lead to a time where the new member in the board of directors will just be a competent worker but has no history with the company.

User Rebornix
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