Board Members Act in the Best Interest of the Firm

question 21

Multiple Choice

Board members act in the best interest of the firm:

• A) because they are required to by law.
• B) when they do not own stock in the firm.
• C) when they take an extremely cautious approach to ratifying decisions.
• D) in part because they wish to maintain a good reputation in order to be offered other board positions.

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Definitions:

Industrial Jobs

Employment in the manufacturing sector, involving the production of goods in factories, which saw significant growth during the Industrial Revolution.

Black Laborers

African American workers, often facing significant discrimination and inequality in employment opportunities and conditions.

Patriotism

The feeling of love, devotion, and sense of attachment to one’s country and its values, often expressing pride in national achievements and a willingness to defend it.

American Economic System

A hybrid system combining elements of capitalism and government regulation, with a significant emphasis on private ownership and free-market principles.