Final answer:
The statement that self-perpetuating board members are elected by the organization's membership is false.
Step-by-step explanation:
Self-perpetuating board members are elected by the organization's membership is False.
In theory, the board of directors helps to ensure that the firm runs in the interests of the true owners-the shareholders. However, the top executives who run the firm have a strong voice in choosing the candidates who will serve on their board of directors. After all, few shareholders are knowledgeable enough or have enough personal incentive to spend energy and money nominating alternative board members.