Which of the following statements is incorrect regarding boards of directors?
A) If a new venture organizes as a corporation, it is not legally required to have a board of directors, but it is strongly recommended.
B) A board is typically made up of both inside and outside directors.
C) The board is responsible for declaring dividends.
D) Most boards meet formally three or four times a year.
E) The boards for publicly-traded companies are required by law to have audit and compensation committees.

Question

Quizplus · Accepted Answer

Corporations, especially if they are publicly traded, are legally required to have a board of directors to ensure proper governance and oversight.

Which of the Following Statements Is Incorrect Regarding Boards of Directors