Which of the Following Is a Major Function of the Board

question 48

Multiple Choice

Which of the following is a major function of the Board of Directors of a company?

• A) Approving decisions made by divisional managers
• B) Monitoring line managers
• C) Aligning corporate strategy with stockholder interests 
• D) Creating contracts with suppliers
• E) Designing marketing strategies for the company

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Definitions:

Times-Interest-Earned Ratio

A fiscal indicator that evaluates a firm's capacity to satisfy its debt commitments utilizing its present income.

Operating Costs

Expenditures that are necessary for the day-to-day operations of a business, including costs related to manufacturing, sales, and administration.

Interest Charges

Interest charges are the costs incurred by an entity for borrowing money, quantified as a percentage of the principal loan amount.

Assets

Economic resources or owned items of value that an individual, corporation, or country possesses, expected to provide future benefits.