The Board of Directors and the CEO

question 11

Multiple Choice

The board of directors and the CEO

• A)do not have a principal/agent relationship.
• B)are agent and principal, respectively.
• C)are principal and agent, respectively.
• D)are one in the same for small corporations.

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Definitions:

Unique Situation

A scenario or circumstance that is distinct from others, often requiring specialized handling or consideration.

Organisational Design

Organisational design involves the process of aligning an organization's structure and processes with its objectives to enhance efficiency, adaptability, and overall performance.

Premise

An initial statement or proposition from which conclusions are drawn or arguments are based.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources in a competitive context.