Which of the Following Statements Is Incorrect Regarding Boards of Directors

question 11

Multiple Choice

Which of the following statements is incorrect regarding boards of directors?

• A) If a new venture organizes as a corporation, it is not legally required to have a board of directors, but it is strongly recommended.
• B) A board is typically made up of both inside and outside directors.
• C) The board is responsible for declaring dividends.
• D) Most boards meet formally three or four times a year.
• E) The boards for publicly-traded companies are required by law to have audit and compensation committees.