The following question is on one of the mock exams that I have and im stuck on why the correct answer given is best. Appreciate your help in understanding the answer
The board of directors of an association is sharply divided about whether to increase membership dues. An argumentative emotional discussion of this issue at the last boarding meeting leads to a deadlock. The most effective method for the Chairman of the Board to use to develop board consensus is to:
(a) postpone the issue to the next meeting which is in four months
(b) assign several members to develop a compromise recommendation and report on the compromise the next day
(c) remind each of thre board members of his or her fiduciary responsibilities
(d) allow the most vocal board members to debate the issue as long as necessary
Correct answer is B
I ruled out A and D immediately; B delays the discussion although just for another day but shouldn't there be some resolution during the meeting which is why I chose C.
B is correct because that is how you develop board "consensus" which is ultimately the question here. A reminder of their fiduciary responsibilities in this case wouldn't clear up the deadlock since there are obviously compelling arguments on both sides - sounds like they believe they are doing their resp to avoid making a poor financial decision.
Agree with Peggy. While the discussion is delayed for another day, having members form a compromise plan takes the board closer to consensus. Reminding them of fiduciary responsibilities does not guarantee that they will make the decision any sooner.
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