Question

Angelica is the CEO of Sandhaven Ltd., a publicly traded company. The shareholders want Angelica on the board of directors despite her recent appointment as the CEO. This decision of the shareholders is most likely because Angelica is:_________.
a. likely to provide the board with valuable inside information.
b. more likely than other board members to take care of the stockholders.
c. also the CEO of other companies.
d. a board member of a major client.

Answer 1

Answer:

likely to provide the board with valuable inside information.

Explanation:

Strong cooperation between the CEO and shareholders can help define a broad and forward-looking board agend. Angelica is mostly likely appointed to the board because she is likely to provide the board with very important inside information, of which without such valuable inside information, the board would not be able to effectively monitor the firm.