Which of the Following Statements Is True Regarding the Board

question 42

Multiple Choice

Which of the following statements is 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) all of the above

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Definitions:

Fraud Suits

Legal actions initiated to address claims of deceitful practices or dishonesty, aiming to recover losses or damages caused by fraud.

Trade Secrets

Confidential business information that gives a company a competitive advantage.

Search Warrant

An order granted by a public authority, such as a judge, that authorizes law enforcement personnel to search particular premises or property.

Data Secret

A type of confidential information, typically business-related, that is not widely known and gives a company a competitive advantage.