Which of the Following Is NOT a Responsibility of the Board

question 33

Multiple Choice

Which of the following is NOT a responsibility of the Board of Directors?

• A) Monitor corporate strategy decisions and ensure that they are consistent with stockholder interests
• B) Apply sanctions on management when appropriate
• C) Hire, fire, and compensate the CEO
• D) Develop targets for divisional managers
• E) Make sure the audited financial statements present a true picture of the company's financial situation

Recognize how interests in joint ventures and joint operations are accounted for and disclosed.

Understand the entitlement of venturers to share in profits and the treatment of losses.

Identify financial statement presentation and disclosure requirements for joint arrangements.

Analyze the financial impact and accounting treatment of venturer contributions and investments in joint arrangements.

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Definitions:

Formal Authority

Formal authority is the power or right, often vested by an organization, to give orders and make decisions within a designated scope.

Rewards Or Punishments

Mechanisms used to motivate individuals or groups, where rewards incentivize desired behaviors and punishments deter undesired ones.

Covert Influence

The subtle or hidden exertion of control or persuasion over others’ decisions or behavior without their explicit awareness.

Manipulation And Cooption

Strategies used to influence or control others' actions or decisions subtly and, sometimes, unethically.