The directors of a company are a central factor in corporate governance because they:

Question

Quizplus · Accepted Answer

The directors of a company exercise formal legal authority over company policy. They are responsible for making important decisions, selecting executive leadership, and developing the overall strategy of the company.

B and C are not necessarily true for all directors, as they may have varying stakes in the company's performance and views on their responsibilities to employees and customers.

D is not a factor in corporate governance, as inheriting a business does not automatically give someone the role of director.

The Directors of a Company Are a Central Factor in Corporate