Which of the Following Is an Incorrect Statement About Directors

question 49

Multiple Choice

Which of the following is an incorrect statement about directors?

• A) Their eligibility requirements may be found in the bylaws.
• B) Bylaws may require that directors be shareholders in the corporation.
• C) The board of directors has authority to manage the corporation.
• D) Courts will interfere with the board's discretion when they disagree with its actions.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are either cost-prohibitive or outside the company's core competencies.

Third-Party Service Providers

External organizations or individuals that offer specific services or perform tasks on behalf of another company, typically as a form of outsourcing.

Internal Staff

Employees who work within an organization, as opposed to external contractors or consultants, contributing to its operations, culture, and goals.

Outsourcing

The business practice of hiring external firms to handle certain jobs or services instead of performing them in-house.