Which of the following statements is true of the board of directors?
A) The board is responsible for selecting the CEO.
B) A board's membership usually includes some frontline executives.
C) The employees elect a board of directors to oversee the organization.
D) Today,most companies have a majority of inside directors.
E) A board of directors comprises all owners of an organization.

Question

Quizplus · Accepted Answer

In corporations,the owners are the stockholders and few are directly involved in managing the organization.Stockholders elect a board of directors to oversee the organization.Boards select,assess,reward,and perhaps replace the CEO.The board's membership usually includes some top executives-called inside directors.Today most companies have a majority of outside directors.

Which of the Following Statements Is True of the Board