The following which is not a key factor in the effectiveness of a board of directors is:Group of answer choicessubjectivity.competence.diversity.independence.
Question
The following which is not a key factor in the effectiveness of a board of directors is:
- subjectivity.
- competence.
- diversity.
- independence.
Solution
To identify which option is not a key factor in the effectiveness of a board of directors, let's analyze each choice provided:
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Subjectivity: This refers to the effect of personal feelings, tastes, or opinions. In the context of a board of directors, subjectivity can lead to biased decision-making and may detract from its effectiveness.
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Competence: This is crucial. A board with members who have the necessary skills, knowledge, and experience is more likely to make informed decisions that benefit the organization.
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Diversity: Diversity in a board helps bring different perspectives, which can enhance decision-making and innovation. This is increasingly recognized as an important factor in board effectiveness.
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Independence: An independent board can make impartial decisions that are in the best interests of shareholders and the organization, free from conflicts of interest.
Conclusion
The option that is not a key factor in the effectiveness of a board of directors is subjectivity. This is because it can hinder decision-making rather than contribute positively, whereas the other factors (competence, diversity, and independence) significantly enhance the board's effectiveness.
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