A7 In the case of Theranos, one weakness of the board of directors was:

Question

BlackTom AI · Accepted Answer

Limited knowledge and expertise in the healthcare sector undermined the board’s ability to provide effective oversight of Theranos.

1) Relevant knowledge points and concepts
- Role of a corporate board: set strategy, monitor management, assess risks, demand independent verification, and ensure regulatory/compliance oversight. 
- Importance of domain expertise: complex technical and regulatory industries (like medical diagnostics) require board members who can evaluate scientific claims, understand clinical validation, and recognize red flags in testing methodology and data. 
- Theranos context: the board was populated with high-profile former politicians, generals, and business leaders but lacked experienced clinical laboratory scientists, diagnostic inventors, or practicing physicians with relevant technical expertise.

2) Step-by-step reasoning
- Boards must evaluate whether a company’s technology claims are credible and whether validation studies are robust. 
- Theranos CEO made bold claims about a novel blood-testing device; technical validation required knowledge of lab standards, regulatory processes (CLIA/FDA), and diagnostic accuracy metrics (sensitivity, specificity). 
- Without members versed in these areas, the board could not critically interrogate test data, laboratory practices, or the absence of independent peer-reviewed validation. 
- As a result, warning signs were missed, management assertions went unchallenged, and inadequate oversight persisted.

3) Calculations
- None required.

4) Why the correct answer is correct
- “Limited knowledge and expertise in the healthcare sector” directly captures the primary governance weakness: inability to assess the science, regulatory compliance, and clinical risks, which enabled questionable practices to continue.

5) Why the other options are incorrect
- “Excessive independence and over-monitoring” is wrong: the board was generally deferential to leadership, not overbearing. 
- “Too many financial experts and too few political leaders” is the reverse of reality—there were many political/military figures, not an overabundance of financial experts. 
- “Direct involvement in day-to-day operations” is incorrect: the board was largely hands-off and did not micromanage operations.

6) Conclusion
The correct answer is “limited knowledge and expertise in the healthcare sector,” which matches the provided answer.

A7 In the case of Theranos, one weakness of the board of directors was:单项选择题

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