Which of the Following Statements Is Not True Regarding the Board

question 77

Multiple Choice

Which of the following statements is not 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) More than half of all publicly traded companies in the United States are incorporated in New York, requiring that the corporation be managed in accordance with NY state laws.

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Definitions:

Medical Director

A physician responsible for overseeing the clinical and administrative operations within a healthcare organization or facility.

Practice Manager

An individual responsible for overseeing the day-to-day operations of a medical or dental practice.

Policies And Procedures Manual

A comprehensive document that outlines the guidelines, rules, and detailed steps for operations and activities within an organization.

Administrative Procedures

The structured processes and sets of practices that govern the operation and management of organizations or institutions.