in general the role of board of directors is to:
a) direct the day-to-day activities of the firm
b) represent investor interests in management of the firm
c) insure that the firm operates legally
d)provide staff assistance to the CEO in strategic matters
Thank you for using the Jiskha Homework Help Forum. The rolw of the Board of Directors is to represent the stockholders (the investors, b)
The correct answer is (b) represent investor interests in management of the firm.
To arrive at this answer, let's break down the role of the board of directors and examine each option:
a) Direct the day-to-day activities of the firm - This is not typically the role of the board of directors. The day-to-day activities are usually delegated to the management team led by the CEO.
b) Represent investor interests in management of the firm - This is a key function of the board of directors. Shareholders elect directors to ensure that their interests are protected and that the management team operates in accordance with the shareholders' best interests.
c) Insure that the firm operates legally - While the board of directors does have a responsibility to ensure legal compliance, this is not their primary role. Compliance with legal requirements is usually managed by the company's legal and compliance departments, overseen by the board.
d) Provide staff assistance to the CEO in strategic matters - The board of directors provides guidance and oversight to the CEO and management team, but their primary role is not to provide staff assistance. Instead, they focus on setting strategic direction and monitoring the performance of the company.
So, the correct answer is b) represent investor interests in the management of the firm.