Question

Marcus Struthers is on the board of directors for Camp, Inc.; however, Marcus is not part of the management team for Camp, Inc. Marcus would be considered which of the following?

1) Governance director
2) Executive director
3) Non-executive director
4) Non-reporting director

Answer 1

Marcus Struthers would be considered a non-executive director at Camp, Inc., as he is not part of the day-to-day management but provides oversight and policymaking.

Step-by-step explanation:

Marcus Struthers, who is on the board of directors for Camp, Inc. but not part of the management team, would be considered a non-executive director. Non-executive directors do not manage the day-to-day operations of a company; they are involved primarily in policymaking and planning exercises. These individuals provide independent oversight and serve on committees that handle sensitive issues such as executive compensation, audit and corporate governance, ensuring that the firm is run in the interests of the shareholders.

The role of the board of directors is to be the first line of corporate governance for a company. As depicted in the case of Lehman Brothers, where corporate governance failed to provide accurate financial information, the importance of effective oversight by the board, including non-executive directors, is crucial.