What is one of the most common reasons that a board of directors chooses a new CEO from outside the organization?
A) Board desires to continue the strategies of the previous CEO
B) There are no insiders who are qualified to be CEO
C) Board desires to change the firm's strategies
D) None of these

Question

Quizplus · Accepted Answer

The board often selects a new CEO from outside the organization when it seeks to significantly change the firm's strategies, as external candidates are less likely to be tied to the current strategies and more likely to bring fresh perspectives and approaches.

What Is One of the Most Common Reasons That a Board