Every Corporation Should Have a Strong Independent Board of Directors

question 99

Multiple Choice

Every corporation should have a strong independent board of directors that does all of the following EXCEPT

• A) is well informed about the company's performance and exercises its fiduciary duty to protect shareholders responsibly.
• B) guides management in choosing a strategic direction and makes independent judgments about the validity and wisdom of management's proposed strategic actions.
• C) evaluates the leadership skills of the CEO and other senior executives.
• D) has the courage to curb management actions deemed inappropriate or unduly risky.
• E) is responsible for leading the strategy-making, strategy-executing process.

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Definitions:

Trade Price

The price at which goods are sold between companies before they reach the final consumer, often lower than the retail price.

Normal Good

A normal good is a type of good for which demand increases when income increases, and falls when income decreases but price remains constant.

Domestic Price

The cost of products or services inside the confines of a nation, in contrast to prices for international trade or exports.

Trade Price

The price at which goods or services are actually bought and sold between parties in the marketplace.