Question

Janet is on the board of directors for SPT Corporation. Which of the following assumptions about Janet's involvement with SPT Corporation is incorrect?

a) She has a fiduciary duty to the shareholders
b) She is involved in the day-to-day operations
c) She is responsible for strategic decision-making
d) She represents the interests of the shareholders

Answer 1

Janet, being a member of the board of directors for SPT Corporation, is not involved in the daily operations of the company. Her responsibilities include strategic decision-making and ensuring the company's operations align with shareholder interests.

Step-by-step explanation:

Among the assumptions about Janet's involvement with the SPT Corporation, the incorrect one is that she is involved in the day-to-day operations of the company. Typically, the board of directors, including Janet, are not involved in the daily management of the company. Their role is primarily to provide strategic decision-making guidance, ensure the company is running in the interest of shareholders, and uphold their fiduciary duty to them. The management team or executives like the CEO are the ones who typically handle the day-to-day operations.