- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
Both the CEO and a union representative serve as board members. They are categorized as ______.
II. independent board members
III. non-executive board members
IV. independent executive board members
I. executive board members
II. independent board members
III. non-executive board members
IV. independent executive board members
Correct Answer: I and III
The CEO is an executive board member and the union representative is a non-executive board member. IV is not a defined category on a board.
User Contributed Comments 7
| User | Comment |
|---|---|
| Nikita | that makes absolutely no sense! |
| nsmwaura | Nikita? Why? the answer makes perfect sense... the CEO is an executive board member... union representative are not indipendent since they represent some vested interest |
| tonypractice | Each belongs to a separate category so the answer should clearly read: I and III. |
| gill15 | Nikita This answer would make absolutely no sense if the answers were II and IV. Since it's I and III - it's all good. |
| schweitzdm | The answer should have more clarity. It does make sense but I believe the problem might be semantic here. They do not both belong in I and III. CEO goes w/ I, union goes w/ III. |
| idzani | Agree with schweitzdm. The question should have the word "respectively" at the end. I guess that's what Nikita is tryna say haha. |
| ibrahim18 | Exactly. The question is so confusing. i would think only one answer is needed, not two. Question is not clear. |