Which of the Following Statements About the Board of Directors

question 24

Multiple Choice

Which of the following statements about the board of directors is untrue? 

• A) Boards advise the CEO. 
• B) Boards carry out resource acquisition for the focal firm. 
• C) Affiliated directors are independent directors. 
• D) Boards' effectiveness stems from norms.

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Definitions:

Quarterly Dividends

Dividends that are declared and paid by a company four times a year, usually at a fixed rate per share.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Legal Dividend

A dividend that a company is legally allowed to distribute as determined by its net income or retained earnings.

Noncumulative Preferred Stock

A type of preferred stock that does not accumulate unpaid dividends; if a dividend is skipped, it is not required to be paid later.