The Board of Directors of a Corporation

question 2

Multiple Choice

The board of directors of a corporation:

• A) Are elected by the corporate registrar.
• B) Are responsible for day-to-day operations of the business.
• C) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
• D) May not also be executive officers of the corporation, due to the separate entity principle.
• E) Are responsible for and have final authority for managing corporate activities.

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Definitions:

Centralization

The organizational structure where decision-making authority is concentrated at the top levels of management.

Subsidiary Human Capital

the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to a subsidiary organization.

Transnational Strategy

A business approach where a company seeks to achieve global reach, efficiency, and local responsiveness simultaneously.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often due to unique resources, capabilities, or strategies.