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What is the role of a board of directors in a corporation?
What is the role of a board of directors in a corporation?
- Managing shareholder relations
- Setting policies for corporate management and oversight (correct)
- Handling day-to-day operational tasks
- Implementing marketing strategies
What determines the powers, duties, and responsibilities of a board of directors?
What determines the powers, duties, and responsibilities of a board of directors?
- Shareholder preferences
- Corporate governance regulations and the organization's constitution and by-laws (correct)
- Market trends
- CEO's decisions
What is the primary function of a board of directors?
What is the primary function of a board of directors?
- Representing shareholders' interests (correct)
- Implementing employee engagement strategies
- Maximizing profits for stakeholders
- Overseeing day-to-day operations
What is the composition of a board of directors?
What is the composition of a board of directors?
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What is the governing body responsible for in a corporation?
What is the governing body responsible for in a corporation?
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Study Notes
Role and Responsibilities of a Board of Directors
- The board of directors is the governing body responsible for overseeing the management of a corporation.
- The powers, duties, and responsibilities of a board of directors are determined by the corporation's articles of incorporation, bylaws, and applicable laws.
Primary Function
- The primary function of a board of directors is to make strategic decisions and oversee the overall direction of the corporation.
- This includes setting the corporation's mission, vision, and objectives, as well as monitoring and evaluating its performance.
Composition of a Board of Directors
- A board of directors typically consists of a group of individuals elected by the corporation's shareholders.
- The composition of the board may include insider directors (employees or executives of the corporation), outsider directors (independent experts or professionals), and executive directors (CEO or other high-level executives).
- The ideal composition of a board of directors balances expertise, diversity, and independence to ensure effective governance.
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