Question

in the context of corporate boards, which of the following is true of board members? select one: a. board members should continually engage in closed conversations to determine what they do or do not know. b. board members are denied the legal right to question the ethics of their firm’s executives and others. c. board members need to understand where the company is heading and whether it is realistic that it will get there. d. board members have a fiduciary duty to each other by u.s. law.

Explanation:

• Option a: Board members should have transparent and open communication, not closed conversations to determine knowledge, so this is false.
• Option b: Board members have the right to question ethics of executives to ensure corporate governance, so this is false.
• Option c: Board members' role includes overseeing the company's direction and assessing the realism of its goals, so this is true.
• Option d: Board members' fiduciary duty is to shareholders (or the company), not to each other, so this is false.

Answer:

c. Board members need to understand where the company is heading and whether it is realistic that it will get there.