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4 points    QUESTION 11 The board of directors’ primary responsibility is one of gatekeeper, an...

4 points   

QUESTION 11

  1. The board of directors’ primary responsibility is one of gatekeeper, an ultimate internal control mechanism to protect the interests of shareholders, creditors, and other stakeholders. Therefore, one goal is to minimize the ability of management to expropriate shareholder value through financial statement and other forms of fraud and financial malfeasance.

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Answer #1

True,

The board of directors' key purpose is to take Care of the company's prosperity by directing the company's affairs, whilst protecting the  interests of its shareholders and stakeholders. In addition to Management , business  and financial issues, boards of directors are suppose to  deal with various challenges and issues relating to  corporate social responsibility and corporate ethics and governance.Therefore, one goal is to minimize the ability of management to expropriate shareholder value through financial statement and other forms of fraud and financial malfeasance.

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