Most corporate boards in the U.S. are

Question

Quizplus · Accepted Answer

While some corporate boards may have strong ties to management and be less effective as control mechanisms, overall they serve useful non-control functions such as providing advice and expertise. Additionally, in certain circumstances such as when dealing with mergers or acquisitions, the board can serve as an important control mechanism to protect the interests of shareholders. Therefore, the best choice is D. While some corporate boards may have strong ties to the management of the firm, this does not mean that all corporate boards are useless. In fact, many serve as useful control mechanisms under certain circumstances, such as during times of crisis or major decision-making. Corporate boards also serve useful non-control functions, such as providing guidance and input on long-term strategic planning. While it is true that some boards may be comprised mostly of inside directors, this is not the case for all corporate boards in the U.S. Therefore, option D is the best choice.

Most Corporate Boards in the U.S. Are