Which of the following describes the type of management stru

Which of the following describes the type of management structure that is in place when board members are reluctant to fire an incompetent chief executive officer?

Corporate Management

Closely Held Corporation

Entrenched Management

Limited Liability Corporation

Solution

The Management structure used by corporation is generally effective, it sometimes complicates dismissing incompetent managers. The CEO is usually a member of the board of directors and is frequently influential in choosing other board members. The CEO is also a positive to reward loyal board members As a result, board members may be reluctant to fire the CEO or other top executives even if the individuals are performing poorly. Corporation operating such conditions are said to be experiencing Entrenched Management.