The board of directors of a corporation:
A) Are elected by the corporate registrar.
B) Are responsible for day-to-day operations of the business.
C) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
D) May not also be executive officers of the corporation, due to the separate entity principle.
E) Are responsible for and have final authority for managing corporate activities.

Question

Quizplus · Accepted Answer

The board of directors of a corporation has the ultimate responsibility for managing corporate activities and has final authority over decisions affecting the corporation.

The Board of Directors of a Corporation