Which of the Following Statements Is True of the Board

question 103

Multiple Choice

Which of the following statements is true of the board of directors of a corporation?

• A) It elects the stockholders of the corporation.
• B) It establishes the corporation's mission.
• C) The board members of a corporation often take an active role in the day-to-day management of the corporation.
• D) The board members of a corporation assume unlimited personal liability for the corporation's debts.

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Definitions:

Cost-Benefits Analysts

Professionals who evaluate the economic advantages and disadvantages of a decision by comparing the costs of an action to its benefits.

Price Signals

Price signals are indicators arising from the fluctuation in the price of goods or services, which reflect supply and demand dynamics and guide economic decisions.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not diminish another's.

Patent System

A legal framework that grants inventors exclusive rights to their innovations for a set period of time, encouraging innovation and investment in new ideas.