Explain the Role of the Board of Directors

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The Answer is Boards of directors perform control,service,and resource acquisition functions.Boards' effectiveness in serving the control function stems from their independence,deterrence,and norms.The ability to effectively control managers boils down to how independent directors are.There is a lack of deterrence on the part of directors should they fail to protect shareholder interests.When challenging management,directors have few norms to draw on.In addition to control,another important function of the board is service-primarily advising the CEO.The board is also responsible for resource acquisition for the focal firm.

Explain the Role of the Board of Directors

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Explain the Role of the Board of Directors

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Correct Answer:
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