While Working to Prioritize and Fulfill Their Responsibilities,members of the Board

question 81

Multiple Choice

While working to prioritize and fulfill their responsibilities,members of the board of directors of an organization should

• A) represent their own interests.
• B) represent the interests of the shareholders.
• C) direct all actions of the CEO.
• D) emphasize the importance of short-term goals.

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Definitions:

Professional Ethics

The moral principles and standards that guide behavior within a profession.

Fraudulent Conduct

Deliberate deception practiced to secure unfair or unlawful gain, often leading to financial or personal losses for the victim.

Negligence Theory

A legal principle asserting that a defendant's failure to exercise reasonable care under the circumstances results in unintentional harm to another party.

Impropriety

Inappropriate or unethical behavior or conduct.