Which of the following statements is true about the Board of Directors?

Question

Quizplus · Accepted Answer

It is common for Board members to have multiple board positions, and these individuals are often chosen for their expertise and experience to provide practical advice and guidance to company management. Option A is incorrect because the Board members are elected by the shareholders, not employees. Option B is incorrect because the Board has the power to hire, fire, and compensate the CEO. Option D is incorrect because the Board is responsible for nominating candidates for management positions. Option E is incorrect because the Board is typically made up of independent directors, not divisional or functional managers.

Which of the Following Statements Is True About the Board