Which of the Following Statements About Advisory Boards Is Incorrect

question 43

Multiple Choice

Which of the following statements about advisory boards is incorrect?

• A) If a firm has a board of directors, it is not permitted to have an advisory board.
• B) Many people are more willing to serve on a company's board of advisors than its board of directors because it requires less time and there is no potential legal liability involved.
• C) Most boards of advisers have between 5 and 15 members.
• D) A growing number of startups are forming advisory boards.
• E) An advisory board can be established for general purposes or can be set up to address a specific issue or need.

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Definitions:

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which induces another party to enter into a contract.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person.

Economic Condition

The state of an economy at a given time, including factors like GDP, unemployment rates, and inflation.

Slump

A significant, sudden decrease in economic activity or market prices, often reflecting a downturn in a particular industry or the economy as a whole.