Yoshi,a Ballroom Dance Instructor,was Recently Asked to Be a Director

Multiple Choice

Yoshi,a ballroom dance instructor,was recently asked to be a director of ABC Company,which is publicly traded.Although Yoshi is honored and excited,a friend,Joey,asks whether Yoshi had any experience in accounting,business,or SEC requirements.Yoshi explained that the president of ABC had given assurances that the only responsibility of a director was acting as a figurehead because the officers took care of all detailed corporate business.Yoshi believes accepting the position will provide greater exposure in the community and perhaps increase dance clientele.Is Yoshi correct regarding the responsibilities of a director,and why or why not?

A) Yoshi is correct that the primary job of a director is to serve as a figurehead.
B) Yoshi is correct that the primary job of an outside director is to serve as a figurehead,but that is not true of inside directors.
C) Yoshi is not entirely correct,but has no affirmative responsibility to ensure the accuracy of any reports because that is entirely the responsibility of officers of the corporation.
D) Yoshi is incorrect,and the SEC emphasizes the responsibility of directors to ensure the accuracy and completeness of public company filings with the SEC.