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.

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Definitions:

Expense Account

An account where businesses track costs incurred during operations, often related to employees' business-related expenses.

Chart of Accounts

The Chart of Accounts is a systematic list of all accounts used by an organization, essential for classifying and organizing financial transactions within the general ledger.

Expense Account

An account where costs associated with the operations of a business, such as rent, utilities, and salaries, are recorded.

Asset Account

An account that represents a tangible or intangible item of value owned by a company, such as cash, inventory, or equipment.