Which of the Following Is Not a Reason Why the Board

question 33

Multiple Choice

Which of the following is not a reason why the board of directors may act as the guardian of stockholder interests within a company?

• A) Board members are directly elected by stockholders.
• B) The board is positioned at the apex of decision making within a company and is thus in a good position to monitor strategies.
• C) Board members can be held legally accountable for the actions of the company.
• D) Many board members are the nominees of the company CEO.
• E) The board has legal authority to hire, fire, and compensate senior executives.

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Definitions:

Labor Relations

The interactions between employers and employees, or their representatives, including negotiations, collective bargaining, and conflict resolution.

Dual Role

Involves an individual or entity playing two distinct roles simultaneously, which can lead to conflicts of interest or require balancing competing priorities.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often leading to increased economic interdependence and cultural exchange.

Dimension

An aspect or feature of a situation, problem, or thing.