J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project. The board asks whether the project is compliant with legally-required accounting principles, but asks no other questions about the project, such as how the project supports the company’s mission and strategy. Which of the following is true? A. The board is meeting legal requirements but not its duty of care to shareholders. B. The board is not legally required to meet any duty of care requirements. C. The board is fully meeting its duty of care to shareholders. D. The board is not meeting its duty of care to shareholders.
J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project. The board asks whether the project is compliant with legally-required accounting principles, but asks no other questions about the project, such as how the project supports the company’s mission and strategy. Which of the following is true? A. The board is meeting legal requirements but not its duty of care to shareholders. B. The board is not legally required to meet any duty of care requirements. C. The board is fully meeting its duty of care to shareholders. D. The board is not meeting its duty of care to shareholders.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project. The board asks whether the project is compliant with legally-required accounting principles, but asks no other questions about the project, such as how the project supports the company’s mission and strategy. Which of the following is true?
A. The board is meeting legal requirements but not its duty of care to shareholders.
B. The board is not legally required to meet any duty of care requirements.
C. The board is fully meeting its duty of care to shareholders.
D. The board is not meeting its duty of care to shareholders.
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