Which of the Following Statements Is True Regarding the Board

question 42

Multiple Choice

Which of the following statements is true regarding the board of directors?

• A) The board is charged by law to act with due care.
• B) If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done.
• C) Director liability insurance is often needed to attract people to become members of boards.
• D) Directors must be aware of the needs of various constituent groups to balance all their interests.
• E) all of the above

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Definitions:

Earned Income

Income derived from active work, including wages, salaries, tips, and professional fees.

Graduate Assistantship

A form of financial aid provided to graduate students through part-time teaching or research duties, often including tuition remission and a stipend.

Tax Return

A document filed with a tax authority that reports income, expenses, and other pertinent tax information. Taxes are paid or refunds are requested via a tax return.

Scholarship

Financial support awarded to a student, based on academic achievement or other criteria, which does not need to be repaid.