Which of the following statements is true about the board of directors?

Question

Quizplus · Accepted Answer

It is true that some of the board members hold positions on the boards of several other companies, which is known as cross-directorship. The other options are incorrect: A) The board members are not directly elected by the employees, but rather by the shareholders of the company. B) The board does have legal authority to hire, fire, and compensate the CEO. D) The board does have the power to nominate people for positions in management. E) Divisional and functional managers do not usually form the board; rather, it is typically composed of independent directors who bring diverse perspectives and expertise to the company.

Which of the Following Statements Is True About the Board