Catalyst-Level Boards of Directors Typically

question 52

Multiple Choice

Catalyst-level boards of directors typically

• A) are less involved than active participation boards.
• B) take leading roles in establishing and modifying the company mission, objectives, and strategy.
• C) are involved in a limited degree of key decision-making.
• D) are held to a greater degree of legal responsibility.
• E) experience more financial success than less involved boards.

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Definitions:

Exclusive Use

The right to use a property or product without sharing it with others, often refers to licenses or real estate.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Consent Decrees

Legal agreements that settle a dispute between two parties without admission of guilt but with an agreement to stop the contested activities.

Marginal Revenue

The additional earnings obtained from selling one more unit of a product or service.