Which of the following statements is FALSE?[Fill in the blank]

Question

BlackTom AI · Accepted Answer

A classified (staggered) board means directors are elected to multi-year, overlapping terms—not that their monitoring has been compromised.

1) Relevant concepts
- Classified (staggered) board: directors are divided into classes with staggered terms (e.g., one-third elected each year). Purpose: continuity and anti-takeover protection.  
- Independent, insider, and gray directors: insiders are company executives, gray directors have ties to management, independents are external and expected to monitor management.  
- Board capture/compromise: when monitoring is weakened by personal connections or loyalties, the board is often described as “captured,” “entrenched,” or “dominated by management,” not “classified.”

2) Step-by-step reasoning
- Read each option and test against standard corporate governance definitions.  
- Option d claims: “A board is said to be classified when its monitoring duties have been compromised by connections or perceived loyalties to management.” Compare to the definition: classified = staggered terms. The claim in d describes compromised independence or capture, so it is a misdefinition.

3) (No calculations required.)

4) Why the correct answer is correct
- Because d gives an incorrect definition of “classified.” The correct term for compromised monitoring is something like “captured” or “insider-dominated,” not “classified.” Therefore d is false.

5) Why the other options are true (briefly)
- a: Empirical governance studies note independent directors often spend limited time and serve on multiple boards—true.  
- b: On mixed boards, independent directors typically act as watchdogs—true.  
- c: Independent directors often have less firm-specific wealth at risk than insiders, reducing direct incentive to monitor—true.

6) Conclusion
Option d is the false statement; this matches the provided correct answer (d).

Which of the following statements is FALSE?[Fill in the blank]单项选择题

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