According to the textbook, although a board of directors has formal governance responsibilities, its most useful role is to ________.
A) provide guidance and support to the firm's managers
B) submit papers on behalf of the firm to the SEC
C) represent the firm in public relations activities
D) conduct the firm's annual meeting
E) provide funding to the firm

Question

Quizplus · Accepted Answer

The textbook states that although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers. This helps ensure that the managers are acting in the best interest of the company and making informed decisions. The other options listed (submit papers to the SEC, represent the firm in public relations activities, conduct the annual meeting, provide funding) may be responsibilities of the board, but they are not its primary function according to the textbook.

According to the Textbook, Although a Board of Directors Has