Every Corporation Should Have a Strong Independent Board of Directors

question 35

Multiple Choice

Every corporation should have a strong independent board of directors that:

• A) is well informed about the company's performance and exercises their fiduciary duty to protect shareholders responsibly.
• B) guides management in choosing a strategic direction and to make independent judgments about the validity and wisdom of managements proposed strategic actions.
• C) evaluates the leadership skills of the CEO and other senior executives promote management actions the board believes are inappropriate or unduly risky.
• D) has the courage to curb management actions deemed inappropriate or unduly risky,curtails insight and advice to management.
• E) All of these.

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Definitions:

Scheme

A structured plan or arrangement of ideas or actions intended to achieve a specific goal.

Last-Clear-Chance

A doctrine in tort law that allows a plaintiff to recover damages even if they were partly at fault, under the condition that the defendant had the final opportunity to avoid the accident.

Contributory Negligence

A legal doctrine under which a party can be found to be at fault for their own injury if they contributed to the cause of their harm, potentially limiting or eliminating their right to compensation.

Plaintiff

The party who initiates a lawsuit seeking legal remedy from another party, the defendant, for some injury or damage.