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.

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Definitions:

Illusory Correlations

Observing supposed links among elements (often humans, events, or conducts) where no real correlation exists.

Statistical Techniques

Mathematical methods used to collect, analyze, interpret, and present data in a meaningful way.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists.

Psychological Variable

An element, feature, or factor that can be changed and can affect the outcome of psychological research or behavior.