Which would be a subgroup of the Board of Directors?
A)Audit committee
B)Financial committee
C)Managerial committee
D)Stockholders' committee

Question

Quizplus · Accepted Answer

An audit committee is a subgroup of the Board of Directors that is responsible for auditing the company's financial statements, internal controls, and risk management processes. It is a crucial part of every publicly traded company's corporate governance structure.

B) Financial committee 
 A financial committee may serve a similar purpose to an audit committee, but its scope is usually broader. A financial committee may be responsible for managing the company's financial risks, overseeing investments, and developing financial policies. While it may be a subcommittee of the Board of Directors, it is not as commonly recognized as the audit committee.

C) Managerial committee 
 A managerial committee is not typically a subgroup of the Board of Directors. Instead, it is a group of senior executives or managers who are responsible for overseeing the day-to-day operations of the company.

D) Stockholders' committee 
 A stockholders' committee is not a subgroup of the Board of Directors. It may refer to a group of shareholders who band together to form a committee to advocate for their interests or influence the company's decision-making.

Which Would Be a Subgroup of the Board of Directors