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Answer: Company 2
**Explanation:** - **Company 1**: Low independent directors but CEO does NOT serve as chairperson - **Company 2**: Low independent directors AND CEO serves as chairperson - **Company 3**: High independent directors but CEO serves as chairperson Company 2 has the weakest governance because it combines two governance weaknesses: 1. Low percentage of independent directors (reduces board oversight) 2. CEO serving as chairperson (concentrates power and reduces board independence) This combination creates the most significant governance concerns among the three companies.
Author: LeetQuiz Editorial Team
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| Company 1 | Company 2 | Company 3 |
|---|---|---|
| Percentage of independent directors: | Low | Low |
| CEO serves as chairperson: | No | Yes |
All else being equal, which of the companies most likely has the weakest corporate governance?
A
Company 1
B
Company 2
C
Company 3
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