PRC-3 · Chapter 2 · Question 18 of 61
What is the primary role of the Board of Directors in a public limited company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To oversee the company's management and protect shareholders' interests
Explanation
The Board of Directors is elected by the shareholders to govern the company, set strategic goals, and ensure the executive management acts in the owners' best interests.
More Ownership of Business MCQs
- Q20In a partnership, one specific partner provides capital but does not participate in the active management of the firm, and their liability…
- Q21When a public limited company distributes a portion of its after-tax profits to its shareholders, what is this payment called?
- Q22Which business structure is generally subject to the highest level of statutory regulation, disclosure requirements, and public scrutiny?
- Q23Which of the following is a primary characteristic of a Not-for-Profit Organization (NGO)?
- Q24Mr. Ali runs a freelance graphic design business as a sole trader. If a client sues him for breach of contract and wins a massive…
