A board of directors is said to be captured when: a majority of the directors are independent directors. a majority of the directors are outside directors. its monitoring duties have been compromised by connections or perceived loyalties to management. when the CEO also serves as chairman of the board of directors.

The following which is not a key factor in the effectiveness of a board of directors is:Group of answer choicessubjectivity.competence.diversity.independence.

The board of directors of a corporation:Multiple ChoiceIs elected by the corporate registrar.Are responsible for day-to-day operations of the business.Does not have the power to bind the corporation to contracts, due to lack of mutual agency.May not also be executive officers of the corporation, due to the separate entity principle.Is responsible for overseeing corporate activities.

What makes to achieve the diversity in the board structure? Each director is from different field Their attention is diverted to policy matters Some of the directors are independent directors All the directors are not executive directors

The shareholders that are eligible to vote for the board of directors of a company are:Question 6Select one:a.all shareholders holding more than 1,000 shares.b.all shareholders who attend the annual general meeting.c.all shareholders holding voting shares.d.all preference shareholders.

The primary difference between outside and inside members of the board of directors is that Blank______.Multiple choice question.outside directors are not employees of the firms, whereas inside directors areoutside directors do not have voting rights on major company decisions, whereas inside directors dooutside directors manage employees outside of the United States, whereas inside directors handle U.S.-based operations onlyinside directors have a fiduciary duty to act in the interest of shareholders, whereas outside directors are not