What is the primary responsibility of the Board of Directors (BOD) in a corporation?
Understand the Problem
The question is asking for the main duty of the Board of Directors in a corporation, requiring an understanding of corporate governance.
Answer
Oversee business strategy and hire/evaluate the CEO.
The primary responsibility of a Board of Directors in a corporation is to oversee the overall direction and strategy of the business, ensure corporate objectives are met, and act in the best interests of shareholders. This includes hiring and evaluating the CEO or general manager.
Answer for screen readers
The primary responsibility of a Board of Directors in a corporation is to oversee the overall direction and strategy of the business, ensure corporate objectives are met, and act in the best interests of shareholders. This includes hiring and evaluating the CEO or general manager.
More Information
The Board of Directors plays a crucial role in guiding the company by setting strategies, ensuring financial health, and protecting shareholders' interests. They help define goals and ensure the company's adherence to legal and ethical standards.
Tips
A common mistake is confusing the board's responsibility with day-to-day management, which is the role of the CEO and management team.
Sources
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