CFA Practice Question

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CFA Practice Question

Which of the following most likely would be a reason for concern when evaluating an independent board member's qualifications? The board member ______

A. has served on the board for 15 years.
B. owns 2,000 shares of the corporation's equity.
C. has formerly served on the boards of several successful companies.
Correct Answer: A

Such long-term participation may enhance the individual board member's knowledge of the company, but it also may cause the board member to develop a cooperative relationship with management that could impair his/her willingness to act in the best interests of shareowners.

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