Which of the following is a key feature of effective boards of directors?

Question

Quizplus · Accepted Answer

Holding regular meetings without the CEO present allows the board of directors to provide independent oversight and make decisions without the influence of the CEO. This is essential for effective corporate governance.

Answer: B 
 This statement is incorrect. Filling all important positions on the board with managers with insider knowledge of the firm could lead to conflicts of interest and hinder independent oversight.

Answer: C 
 Combining the duties of the board chairman and the chief executive could create a conflict of interest, as the CEO may prioritize their own interests over those of shareholders. This is not a key feature of effective boards of directors.

Answer: D 
 Incorporating outside members onto the board allows for diverse perspectives and independent oversight, which are both important for effective corporate governance. Therefore, ensuring that no outside members are included on the board is not a key feature of effective boards of directors.

Which of the Following Is a Key Feature of Effective