Podcast
Questions and Answers
What is the primary role of the board of directors in a company?
What is the primary role of the board of directors in a company?
- To oversee daily operational tasks
- To direct and drive company policy (correct)
- To develop employee training programs
- To manage customer relations
Which of the following characteristics is NOT true about the minimum size of a board of directors?
Which of the following characteristics is NOT true about the minimum size of a board of directors?
- It must consist of three members at a minimum
- It must have at least one executive director
- It cannot include external non-executive directors (correct)
- It must include a president and a secretary
What does the term 'sole proprietorship' indicate regarding company management?
What does the term 'sole proprietorship' indicate regarding company management?
- Management responsibilities are distributed to stakeholders
- Management is shared between multiple stakeholders
- A single individual is responsible for managing the company (correct)
- The board of directors is solely responsible for management
Which of the following statements about company listings and management is accurate?
Which of the following statements about company listings and management is accurate?
In what context is a CEO most relevant?
In what context is a CEO most relevant?
Flashcards
Chief Executive Officer (CEO)
Chief Executive Officer (CEO)
The most senior executive of a company, responsible for overall strategy and operations, and reports to the board of directors.
Board of Directors
Board of Directors
A group of individuals elected by shareholders to oversee the management and strategy of a company.
Internal Director
Internal Director
A member of the board of directors who is also an employee of the company, often holding a high-level executive position.
External Director
External Director
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Code of Good Governance
Code of Good Governance
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Study Notes
Business Administration Overview
- Management is essential in all organizations, regardless of size, location, or work area.
- Company owners decide who manages the business.
- Business administration differences depend on:
- Firm size (micro, small, medium, large)
- Public or private stock market listing
- National laws
- Sole proprietors manage their own company.
- Larger companies (private limited liability co., Capital Companies Act (Spain)) use an administrative body (single or multiple administrators/board of directors) to manage and represent the company.
- Decision-making authority must be centralized. The CEO (Chief Executive Officer) holds this in the US.
Board of Directors Roles
- Directing Company Policy: Set policy for the company
- Controlling Management Affairs: Monitor and control management decisions
- Serving as a Link to Owners: Act as a communication channel between the owners and management.
Board of Directors Characteristics
- Minimum three members (president - exec or non-exec, secretary, etc.)
- Composed of internal (executive) and external (non-executive) directors
- Internal: CEO
- External: block holders or independent directors
- Listed limited liability companies in Spain should follow the Code of Good Governance for Listed Companies.
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Description
This quiz explores the fundamentals of business administration, covering key aspects such as management in various organizational sizes, the roles of a board of directors, and the centralized decision-making structure. Understand how different factors influence business management, including ownership and national regulations.
