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:

Credential Inflation

The increasing demand for higher educational qualifications for jobs that previously required lower levels of education, devaluing certain degrees.

Economic Capital

Economic capital is the total assets or wealth owned by an individual or organization, which can be used or invested to generate income or produce further wealth.

Social Integration

The process during which newcomers or minorities are incorporated into the social structure of the host society.

Trade School

An educational institution that teaches job-specific skills for specific careers or trades, rather than academic subjects.