Corporate Governance – Key Players

What is the main responsibility of the Board of Directors?

• Day-to-day operations

• Financial auditing

• Strategic oversight and monitoring

• Customer service

Who are considered the actual owners of a corporation?

• Board of Directors

• Government

• Shareholders

• Creditors

Senior Management is responsible for developing corporate governance laws.

• True

• False

The principle of _________ means each share owned gives the right to one vote in shareholder decisions.

The principle of _________ means each share owned gives the right to one vote in shareholder decisions.

• Equal value

• One share, one vote

• Proportional representation

• Corporate independence

Which of the following is NOT a fiduciary duty of the Board of Directors?

• Duty of care

• Duty of loyalty

• Duty of profitability

• Duty to act in good faith

Shareholders have the right to remove board members through legal action.

• True

• False

Who reports directly to the Board of Directors?

• Shareholders

• Customers

• Senior Management

• Auditors

Which group is responsible for selecting new board members?

• Shareholders

• Nominating Committee

• Senior Management

• External consultants

The Board of Directors may form smaller ________ to focus on specific tasks such as auditing or nomination.

• Units

• Departments

• Subcommittees

• Teams