Every corporation should have a strong independent board of directors that does all of the following EXCEPT
A) is well informed about the company's performance and exercises its fiduciary duty to protect shareholders responsibly.
B) guides management in choosing a strategic direction and makes independent judgments about the validity and wisdom of management's proposed strategic actions.
C) evaluates the leadership skills of the CEO and other senior executives.
D) has the courage to curb management actions deemed inappropriate or unduly risky.
E) is responsible for leading the strategy-making, strategy-executing process.

Question

Quizplus · Accepted Answer

While the board of directors should play an active role in guiding and evaluating the company's direction, it should not be responsible for leading the strategy-making and execution process. This is the role of the company's management team. Therefore, option E is the only choice that is not part of the board's responsibilities.

Every Corporation Should Have a Strong Independent Board of Directors