The Requirements of a Board of Directors Vary Significantly by Country

question 88

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)Reviewing and approving the use of resources.
• B)Setting corporate strategy, overall direction, mission or vision.
• C)Controlling, monitoring, or supervising top management.
• D)Becoming directly involved in managerial decisions.
• E)Hiring and firing the CEO and top management.

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Definitions:

Profitability Index

A financial metric that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.

Accounting Rate

Typically refers to the rate of return or interest rate used in financial calculations, such as net present value or internal rate of return.