What is a key responsibility of the market's board of directors?
Understand the Problem
The question is asking about the primary responsibility of the market's board of directors among the given options. It requires knowledge of corporate governance and the roles of a board in a market context.
Answer
Look out for shareholders' interests.
A key responsibility of the market's board of directors is to look out for shareholders' interests and ensure the company's strategic direction and management align with those interests.
Answer for screen readers
A key responsibility of the market's board of directors is to look out for shareholders' interests and ensure the company's strategic direction and management align with those interests.
More Information
Board directors are legally obligated to prioritize shareholders' interests. This encompasses oversight, strategic guidance, and ensuring management decisions align with shareholders' interests.
Tips
A common mistake is to assume the board's sole responsibility is strategic planning, overlooking their duty to represent shareholder interests.
Sources
- Get on Board: Understanding the Role of Corporate Directors - finra.org
- Board of Directors: Overview, Functions, & Different Structures - corporatefinanceinstitute.com
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