A board of directors has three formal responsibilities: appoint the officers of the firm, declare dividends, and:
A) write the firm's strategic plan
B) conduct the annual meeting
C) provide funding for the firm
D) represent the firm in public relations activities
E) oversee the affairs of the corporation

Question

Quizplus · Accepted Answer

The third formal responsibility of a board of directors is to oversee the affairs of the corporation, which includes monitoring the performance of management, setting policies and objectives for the company, and ensuring that the company is complying with relevant laws and regulations. While some boards may be involved in writing the firm's strategic plan or representing the firm in public relations activities, these are not considered formal responsibilities. Conducting the annual meeting and providing funding for the firm are typically the responsibility of management, rather than the board of directors.

A Board of Directors Has Three Formal Responsibilities: Appoint the Officers