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.

---

Definitions:

Control Function

A process within management used to monitor performance and ensure that objectives are achieved.

Corruption

The abuse of entrusted power for private gain, often undermining the integrity of institutions and causing harm to society.

Underground Prison Economy

A clandestine system of trade and services operated by inmates within a correctional facility.

Illicit Profits

Gains derived unlawfully from criminal activities or unethical business practices.