Which of the Following Statements About the Board of Directors

question 68

Multiple Choice

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

• A) Board members are elected by stockholders.
• B) The board can be held legally accountable for a company's actions.
• C) The board has the legal authority to hire, fire, and compensate the CEO.
• D) All directors are full-time employees of the company.
• E) Outside directors help perform the monitoring function of the board.

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Definitions:

Joint Legal Custody

A legal arrangement whereby both parents share the rights and responsibilities to make decisions about their child's upbringing, including education, healthcare, and religious instruction.

Economic Downturns

Periods when economic activity is declining, leading to reduced consumer spending, employment, and business investment.

Stay-at-home Parents

Denotes parents who choose to stay at home to manage the household and care for their children instead of working outside the home.

Single-parent Family

A family structure consisting of one parent living with their children due to various circumstances.