Which one of the following statements is TRUE?
A) It is harder for dissidents to gain board seats if a company's board is classified.
B) A classified board is one in which an announcement requesting applications for board members appears in the newspaper.
C) In a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.
D) Inside directors are more concerned with shareholders' interests since they are more closely concerned with firm operations.
E) Management is said to be entrenched when the senior managers are consuming excessive perquisites.

Question

Quizplus · Accepted Answer

A classified board is one in which directors are elected for staggered terms, with only a portion of the board up for election each year. This makes it more difficult for dissidents to gain board seats, as they must wait until the next election cycle to try again.

Which One of the Following Statements Is TRUE