A study by Core, Holthausen, and Larker, as well as other research, indicates the following characteristics of boards would be desirable:

Question

Quizplus · Accepted Answer

All three characteristics mentioned in options A, B, and C have been found to be desirable for boards according to the study by Core, Holthausen, and Larker and other research. A board with fewer or no gray directors (directors who are retired CEOs or executives) is believed to have better independence and objectivity. Fewer inside board members (those who are also executives or employees of the company) help ensure that the board is not influenced solely by management and is more likely to provide oversight. Fewer interlocked directorships (where board members serve on multiple boards of companies with interdependent interests) can help avoid conflicts of interest and promote better decision-making.

A Study by Core, Holthausen, and Larker, as Well as Other