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:

Proportional Tax

A taxation structure where the rate of tax stays the same, no matter the taxable amount.

Retail Sales Tax

A tax imposed on the retail price of goods and services paid by the consumer at the point of sale.

Easily Shifted

A descriptor for economic burdens or benefits that can be transferred or moved easily from one party to another.

Income Tax

A tax levied by governments on individuals or entities' income, affecting earnings from various sources including wages, investments, or profits from business.