The CEO of Skyco,a publicly-traded company that has been earning below-average returns,has been publicly criticized by shareholders for persuading the board of directors to give her interest-free loans,for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there,and for excessive stock options. The CEO's behavior may be indication of

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The behavior of the CEO, as described, suggests that the board of directors may not be effectively monitoring the CEO's actions or holding her accountable for her decisions. This points to a weak board of directors. While other options may also be contributing factors, such as the risk propensity of owners and managers or the laxity of institutional investors, there is not enough information given in the scenario to definitively support those choices as the best answer.

The CEO of Skyco,a Publicly-Traded Company That Has Been Earning