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True or false: When the roles of chief executive officer (CEO) and chairperson of the board of directors in an organization are merged into one individual, the board is given the benefit of leadership
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True or false: When the roles of chief executive officer (CEO) and chairperson of the board of directors in an organization are merged into one individual, the board is given the benefit of leadership from someone who is aware of the inner workings of the organization.

User Erdeszt
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Answer: True

Step-by-step explanation:

The CEO knows what is going on in the company and so if the CEO is made chairperson of the board as well, they will be able to make decisions for the company which take into account the actual situations facing the company.

Unfortunately it also reduces Board independence which is very necessary when it comes to preventing the Agency problem where management might act in their own interests instead of that of the shareholders.

User Alex Vazhev
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