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:

Serial Monogamy

The practice of engaging in a series of monogamous sexual relationships, one after the other, over a period of time.

Cohabiters

Individuals who live together in a domestic partnership without being legally married.

Noncohabitors

Individuals who are in a romantic relationship but choose to live separately, not sharing the same residence.

Institution of Marriage

A socially and legally recognized union between individuals that establishes rights and obligations between them, as well as their children, and their in-laws.