Interlocking directorates refers to a situation where
A) a director of one firm is also a board member of a competing firm.
B) members of the board of directors of a firm could not agree on a clear strategy for the firm.
C) competing firms have separate and different members in their boards.
D) a company's board splits into two rival camps locked in constant struggle.

Question

Quizplus · Accepted Answer

Interlocking directorates refer to a situation where a director of one firm also serves as a board member of a competing firm. This creates a potential conflict of interest as the director may prioritize the interests of one firm over the other.

Interlocking Directorates Refers to a Situation Where