Which of the following is a responsibility of Lakehead Marine’s board of directors rather than its management?
Which of the following is a responsibility of Lakehead Marine’s board of directors rather than its management?
Answer
Declaring the quarterly dividend
Options - A. Declaring the quarterly dividend - B. Selecting the aluminum supplier for the ferry hulls - C. Hiring a foreman for the welding shop - D. Setting the price on a bid for a harbour tug Why - A. Correct — dividends are a distribution to owners, and only the board can declare one. - B. Supplier selection is an operating decision; the board oversees the risk system, not individual purchases. - C. Hiring below the executive level is management’s; the board appoints only the officers. - D. Pricing a bid is day-to-day commercial management.
OpenStax Finance §2.3; OpenStax Intro to Business §4.3; CBCA ss. 122, 158; NI 52-109