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:

Small Business Owner

An individual who owns and operates a business that is smaller in size, typically identified by revenue, employees, or other criteria.

Ethic Of Ultimate Ends

A moral philosophy that evaluates actions by their consequences or ultimate outcomes, often associated with utilitarianism.

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A German sociologist, economist, and political scientist known for his theory on the structure of authority and his insights on the development of capitalism.

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