With respect to the board of directors of a corporation, which of the following is NOT correct?
A) They manage the business and affairs of the corporation.
B) They have the authority to delegate power to officers and agents.
C) They must always obtain shareholder approval before deciding questions of operating policy.
D) They are the shareholders' elected representatives.

Question

Quizplus · Accepted Answer

The board of directors has broad powers to manage the business and affairs of the corporation, including making decisions on operating policy without always needing to obtain shareholder approval. Shareholder approval is typically required for fundamental changes such as amendments to the articles of incorporation, mergers, or sales of substantially all of the corporation's assets.

With Respect to the Board of Directors of a Corporation