STATEMENT I:  A sign that will indicate wherein TRUST is lacking among the board members is when the members begin to develop using "back channels" to line managers within the company.  This occurs because the leader, like CEO has not provided sufficient and timely information or when the board members are excessively political and have agendas they would like to hide from the CEO.  STATEMENT II:  In building an effective board, the CEO, the Chairman, the lead director and the board in general need to demonstrate through their actions that they understand the difference of between dissent and disloyalty.  This characteristic cannot be legislated, meaning you can not just include in nominating committee rules and regulations or guidelines for director's resumes.  It has to be shown that the directors believe in and modelled in their actions.  Both Statements I and II are INCORRECT Statement I only is CORRECT Both Statements I and II are CORRECT Statement II only is CORRECT

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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8. STATEMENT I:  A sign that will indicate wherein TRUST is lacking among the board members is when the members begin to develop using "back channels" to line managers within the company.  This occurs because the leader, like CEO has not provided sufficient and timely information or when the board members are excessively political and have agendas they would like to hide from the CEO. 

STATEMENT II:  In building an effective board, the CEO, the Chairman, the lead director and the board in general need to demonstrate through their actions that they understand the difference of between dissent and disloyalty.  This characteristic cannot be legislated, meaning you can not just include in nominating committee rules and regulations or guidelines for director's resumes.  It has to be shown that the directors believe in and modelled in their actions. 


Both Statements I and II are INCORRECT
Statement I only is CORRECT
Both Statements I and II are CORRECT
Statement II only is CORRECT
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