Which of the Following Statements About Advisory Boards Is Incorrect

question 55

Multiple Choice

Which of the following statements about advisory boards is incorrect?

• A) The fact that a corporation has a board of directors does not preclude it from establishing one or more advisory boards.
• B) An advisory board can be established for general purposes or can be set up to address a specific issue or need.
• C) Similar to a board of directors, an advisory board has legal responsibility for the firm in certain areas.
• D) An advisory board is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.
• E) A growing number of startups are forming advisory boards.

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Definitions:

Intellectual Property

The intangible property created by individuals or corporations, which is protected under trade secret, patent, and copyright laws.

Statutory Grant

A legal mechanism through which government agencies provide funds to organizations, typically for specified purposes, under the authority of law.

Ownership

The legal right or state of having complete possession and control over property, assets, or intellectual property.

Unintentional Threat

A security risk that occurs without malicious intent, often due to human error or negligence.