Question

Research suggests that boards of directors perform better if:

a. outside directors own significant equity in the organization.

b. the board includes employees as voting members.

c. the board is homogenous in composition.

d. the CEO is also the chairperson of the board of directors.

Answer 1

Answer:

c.

Explanation:

Research suggests that boards of directors perform better if the board is homogenous in composition. This refers to the board members being alike in terms of thinking. Therefore, a board of directors with all members that think alike will perform better since they will all be focused on moving towards the same goal, and decisions will be made with far greater ease.