The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?

A) effective board leadership including the processes, makeup and output of the board

B) strategy of the organization

C) risk vs. initiative and the overall risk profile of the organization

D) becoming directly involved in managerial decisions

E) sustainability

Question

Business

Ronald Pratt

29 August, 23:51

The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?

A) effective board leadership including the processes, makeup and output of the board

B) strategy of the organization

C) risk vs. initiative and the overall risk profile of the organization

D) becoming directly involved in managerial decisions

E) sustainability

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Answers (1)

Know the Answer?

Maia Walls · Answer 1

becoming directly involved in managerial decisions.

Explanation:

A board of directors is a group that is chosen to make decisions that will affect the overall goals of the organisation and act in shareholder interest. They evaluate the performance of the management and ensure their actions are favoring shareholders.

Directors however should not be directly involved in managerial decisions in the running of the business. They only make decisions that affect the overall business such as aquisitions, mergers, stock options and so on.