What are the fiduciary obligations of the board of directors?
A) Maximize profits for the company and its shareholders
B) Give excessive executive compensation
C) Safeguard the organization's resources and interests of the company's stakeholders
D) Allow high risk accounting practices

Question

Quizplus · Accepted Answer

The fiduciary obligations of the board of directors include safeguarding the organization's resources and interests of the company's stakeholders, which can include shareholders, employees, customers, and the community. While maximizing profits is a goal of the board, it should not be at the expense of ethical and legal obligations. Giving excessive executive compensation and allowing high risk accounting practices are not fiduciary obligations of the board.

What Are the Fiduciary Obligations of the Board of Directors