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24-05-2024
Social Studies

Answered

If the CEO of a large company is concurrently holding the board chairmanship, shareholders may raise the issue of poor governance due to the lack of balanced power between shareholders and management. Professor Sonnenfeld views that successful CEOs of large companies, such as JP Morgan Chase and Walt Disney, are also holding the chairmanship because:
A. Slower decision making will reduce risk.
B. The CEO serving as the board chairman will increase risk.
C. This allows protection for minority interests.
D. Business must encourage prudent, strategic risk taking.

Answer :

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