The Board of Directors of a corporation:
A)Are not responsible for hiring other professional managers.
B)Do not decide whether profits will be distributed to stockholders.
C)Make major policy decisions.
D)Are members of a government agency.

Question

Quizplus · Accepted Answer

The Board of Directors of a corporation are responsible for making major policy decisions for the company, such as determining the company's overall direction and strategy, selecting and evaluating the CEO and other top executives, and approving major investments and acquisitions. They also have a fiduciary duty to act in the best interest of the company and its stakeholders, including shareholders. They do not hire other professional managers, as that falls under the purview of the CEO and executive team, and they do decide whether profits will be distributed to stockholders, but this is typically based on the recommendation of the executive team. They are also not members of a government agency, as they are appointed by shareholders or elected by other board members.

The Board of Directors of a Corporation