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:

Portfolio

A portfolio of investment vehicles, including equities, fixed income, raw materials, money, and money-like assets, along with mutual funds and ETFs.

Covariance

A measure indicating the extent to which two variables change in tandem.

Variances

Statistical measures that represent the extent to which a set of numbers is spread out from their average value.

Portfolio

A grouping of investment tools like equities, bonds, raw goods, actual cash, and assets similar to cash, which also comprises mutual funds and ETFs.