An Advisory Board, as Compared to a Board of Directors

question 131

Multiple Choice

An advisory board, as compared to a board of directors,

• A) may be perceived as less of a threat to an owner than a board.
• B) is always compensated unlike persons serving on a board of directors.
• C) have increased legal liability requiring the company to increase their insurance levels.
• D) have greater levels of decision making requiring them to work more cooperatively.

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Definitions:

Inequality

The state of being unequal, particularly in terms of rights, status, or opportunities among different groups of people.

Veil of Ignorance

A concept in moral and political philosophy that suggests making decisions with a hypothetical lack of information about one's status or position in society to ensure fairness.

Original Position

A hypothetical scenario used in political philosophy, particularly by John Rawls, to establish principles of justice that are chosen by individuals under a veil of ignorance, without knowledge of their place in society.

Talents and Abilities

Refer to the natural aptitudes and learned skills that individuals possess, which can vary widely between different people.