General Electric's Board Has Only One Inside Director, John Flannery

General Electric's board has only one inside director, John Flannery, GE's CEO, who also acts as chairman of the board. This is known as duality. Which of the following statements represents the best argument for this duality in GE?

A) A CEO is likely to be more responsible because he or she is setting his or her own performance targets.
B) The CEO might be able to influence the board through setting the meeting agendas.
C) The CEO possesses invaluable inside information that can help him or her chair the board effectively.
D) Any CEO will suggest board appointees who are friendly toward him or her.

Correct Answer:

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