IAI CB1 Practice Questions - IAI Subject CB1 Business Finance Exam

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A company's board separates the roles of Chair and Chief Executive Officer. From a corporate governance perspective, the PRIMARY reason for this separation is to:

Reduce the company's corporation tax liability Avoid the concentration of unfettered decision-making power in one individual Eliminate the need for non-executive directors Guarantee a higher dividend payout to shareholders

Correct Answer:

Avoid the concentration of unfettered decision-making power in one individual

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