Answered: The obligations of an investor-owned…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include

A) taking the lead in developing the company's business model and strategic vision.

B) coming up with compelling strategy proposals to debate against those put forward by top management.

C) taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives.

D) overseeing the company's financial accounting and financial reporting practices and setting CEO compensation
.

E) approving the company's operating strategies, functional-area strategies, business strategy, and overall corporate strategy.

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Expert Solution

Introduction:

The 'board of directors' in an investor-owned company plays a 'crucial role' in shaping the company's future and guiding its success.
The board's 'responsibilities' in the 'strategy-making' and 'strategy-executing' process are vital and have a significant impact on the long-term growth and success of the company.
The board must ensure that these strategies align with the company's vision and mission, and are in the best interest of all stakeholders, including shareholders.
Additionally, the board must maintain a balance between fulfilling its fiduciary responsibilities and promoting the success of the company.