Which of the following might cause the board of directors of an MNC to not be effective at governance?

Question

Quizplus · Accepted Answer

Option A is a problem because when the CEO also serves as Chair of the Board, the CEO has a great deal of power and influence over the decision-making process, which can result in a lack of accountability and oversight on the part of the board.

Option C is problematic because having a board made up entirely of inside members who are managers of the firm can lead to conflicts of interest and a lack of objectivity in decision-making.

Therefore, both options A and C can lead to an ineffective board of directors for an MNC.

Which of the Following Might Cause the Board of Directors