In Delaware, the part of the firm that is given preeminence is ______.
A)the investor
B)the board of directors
C)the employees
D)the chief executive officer

Question

Quizplus · Accepted Answer

In Delaware, where many corporations are incorporated, the board of directors is given significant power and influence. The board is responsible for making major decisions, such as hiring executives and declaring dividends, and is not required to prioritize the interests of any particular stakeholder group (such as investors, employees, or the CEO). This approach is known as the "business judgment rule," and it affords directors a significant degree of discretion in managing the corporation.

In Delaware, the Part of the Firm That Is Given