Katoomba Ltd has a board of directors that consist of a Managing Director (MD. and non-executive directors. The MD has a regular monthly meeting with the Chief Operating Officer (COO) and the managers of Katoomba's three business units. During the meeting, each manager would present an update of their unit's financial performance. The financial information is then reviewed by the MD and the COO to assess the performance of each business unit and to make decisions related to resource allocation. In this case, who is the CODM of Katoomba?
A) The MD only.
B) The board of directors.
C) The MD and the COO.
D) The MD, the COO, and the three managers.

Question

Quizplus · Accepted Answer

The CODM (Chief Operating Decision Maker) is the individual or group responsible for making decisions related to allocating resources and assessing the performance of business units. In this case, it is the MD and the COO who hold regular meetings to review the financial performance of each unit and make decisions related to resource allocation. The non-executive directors are not involved in this specific process, so they are not considered the CODM. The managers of the business units provide financial updates but do not make the final decisions, so they are also not the CODM. Therefore, the best choice is C.

Katoomba Ltd Has a Board of Directors That Consist of a Managing