The Requirements of a Board of Directors Vary Significantly by Country

question 2

Multiple Choice

The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?

• A) effective board leadership including the processes, makeup and output of the board
• B) strategy of the organization
• C) risk vs. initiative and the overall risk profile of the organization
• D) becoming directly involved in managerial decisions
• E) sustainability

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Definitions:

Disposable Income

The amount of money individuals or households have available to spend or save after taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but instead is set aside for future use or investment.

Disposable Income

Income left for households to direct into savings and spending after deductions of income taxes.

APC

APC, or Average Propensity to Consume, is the ratio of total consumption to total disposable income, indicating how much income is spent.