A board of directors typically consists of
A) 10 to 15 individuals drawn from a firm's top management group and from individuals outside the firm.
B) 10 to 15 individuals drawn exclusively from a firm's top management group.
C) 10 to 15 individuals drawn exclusively from individuals outside the firm.
D) 10 to 15 individuals drawn from all stakeholder groups associated with the firm.

Question

Quizplus · Accepted Answer

A board of directors typically consists of 10 to 15 individuals drawn from a firm's top management group and from individuals outside the firm. This ensures a diverse range of perspectives and expertise on the board. Option B and C are too limiting in their composition, and option D is too broad and not necessarily practical for all firms.

A Board of Directors Typically Consists of