Which of the following is not a reason why the board of directors may act as the guardian of stockholder interests within a company?
A) Board members are directly elected by stockholders.
B) The board is positioned at the apex of decision making within a company and is thus in a good position to monitor strategies.
C) Board members can be held legally accountable for the actions of the company.
D) Many board members are the nominees of the company CEO.
E) The board has legal authority to hire, fire, and compensate senior executives.
Correct Answer:
Verified
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