What negative consequence might result if there is a delay in naming a successor when a key executive, like a CEO, suddenly quits?
A) Decreased operating performance for up to two years.
B) Increased recruitment and selection of middle managers.
C) Decreased opportunities for management development.
D) Increased likelihood that the successor will be a family member.

Question

Quizplus · Accepted Answer

If there is a delay in naming a successor for a key executive, such as a CEO, it can result in decreased operating performance for up to two years. This is because there may be a lack of direction and leadership during the transitional period, which can lead to confusion and inefficiencies in the organization. It can also create uncertainty among employees and stakeholders, which can harm the reputation and financial performance of the company.

What Negative Consequence Might Result If There Is a Delay