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NEW QUESTION: 1
As a Senior HR Professional, you may have to work with the board of directors on some organizational issues and goals. How does the board of directors come into existence?
A. Regulations, laws, and policies determine who is eligible to serve on the board of directors.
B. The members of the board are hired just like all employees.
C. The shareholders of the company elect the board of directors.
D. The founder of the organization chooses the members of the board.
Answer: C
Explanation:
Explanation/Reference:
Answer option C is correct.
Shareholders elect the board of directors.
Answer option A is incorrect. The founder of the company doesn't choose the board - the shareholders of the company do.
Answer option B is incorrect. Members of the board may be employees, but it's the shareholders that elect the board, not HR.
Answer option D is incorrect. The shareholders of the company determine who will serve on the board, not regulations or laws.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter Four: Workforce Planning and Employment. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Business Management and Strategy
Objective: Corporate Governance

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