Which of the Following Statements About the Board of Directors

question 21

Multiple Choice

Which of the following statements about the board of directors is NOT true?

• A) Board members are elected by stockholders.
• B) The board can be held legally accountable for a company's actions.
• C) The board has the legal authority to hire, fire, and compensate the CEO.
• D) All the directors are full-time employees of the company.
• E) Outside directors help perform the monitoring function of the board.

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Definitions:

Pays Bills Online

The process of using internet banking or payment platforms to settle invoices or bills.

Compounded Daily

Describes the method by which interest is calculated on an investment or loan with the earned interest being added to the principal daily for future interest calculations.

Annual Percentage Yield

The real rate of return earned on an investment, taking into account the effect of compounding interest.

Compounded Daily

Refers to the method of calculating interest where the accumulated interest is added to the principal sum every day.