In the Strategy-Making, Strategy-Executing Process, Effective Corporate Governance Requires a Company's

question 110

Multiple Choice

In the strategy-making, strategy-executing process, effective corporate governance requires a company's board of directors to

• A) play the lead role in forming the company's strategy and then directly supervising the efforts and actions of senior executives in implementing and executing the strategy.
• B) provide guidance and counsel to the CEO in carrying out his/her duties as chief strategist and chief strategy implementer.
• C) oversee the company's strategic direction, evaluate the caliber of senior executives' skills, handle executive compensation, and oversee financial reporting practices.
• D) work closely with the CEO, senior executives, and the strategic planning staff to develop a strategic plan for the company and then oversee how well the CEO and senior executives carry out the board's directives in implementing and executing the strategic plan.
• E) review and approve the company's business model and also review and approve the proposals and recommendations of the CEO as to how to execute the business model.

---

Definitions:

Accounting Department

A division within a company that is responsible for managing financial records, ensuring compliance with accounting laws, and preparing financial reports.

Organization-Sustaining Activities

Activities that support the organization as a whole rather than any specific product line or department, such as facility management and executive leadership.

Batch-Level Activities

These are tasks or operations that are performed for a batch of products, rather than for each individual unit or continuously for the whole process.

First-Stage Allocation

The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.