The duty of the board of directors of a public corporation is to
A) audit the company's financial statements for accuracy.
B) recommend new products and services.
C) control the day-to-day operations of the firm.
D) protect the company from harsh overseas competition and lower labor costs.
E) ensure decisions by senior managers are in the best interests of the shareholders.

Question

Quizplus · Accepted Answer

The duty of the board of directors of a public corporation is to ensure that the decisions made by senior managers are in the best interests of the shareholders. The board is responsible for overseeing the management of the company, setting high-level goals and objectives, and monitoring performance. While the board may have some input into the development of new products and services, it is not their primary responsibility. Similarly, the board does not control the day-to-day operations of the firm, which is the job of senior management. Finally, while protecting the company from competition and labor costs may be important goals, these are not the primary duties of the board.

The Duty of the Board of Directors of a Public