Having read the above passage, answer these questions in your own words.

a) How would you describe the role of the board of directors?

b) And the role of the senior executives?

c) What happens at the annual general meeting?

d) What is the difference between a strategic and a tactical decision?

e) What part can non-executive directors play in the proceedings?

f) What objections might be raised against the appointment of non-executive direc­tors?

g) What ismeant by an interlocking board of directors?

h) How is it that a board of directors can control a company though they only meet, say, once a week?

 

2. Choose the phrase, A, B, or C, which best completes each sentence, and tick the appropri­ate box.

 

1. When the directors are discussing the problems facing the company they pri­marily have to consider

A. the interests of the public.

B. their own interests.
С. the interests of the shareholders.

2. When a proposal is made and a vote taken the usual arrangement is that

A. each director has one vote no matter how many shares he holds.

B. only the chairperson can vote.

C. the directors with most shares have the most votes.

3. Key members of staff will be chosen by the managing director because

A. he is more knowledgeable than the other directors.

B. he has got to answer to the board for their performance.

С. he earns more than the other directors.

4. Non-executive directors will often be appointed because

A. they have valuable contacts with potential customers.

B. they have departmental responsibilities.

С. no-one else is available.

5. Directors are usually required to have shares in the company so they can

A. be seen to have a personal stake in the business and thus be affected by their decisions.

B. receive share certificates from the registrar’s department.

С. Take on administrative duties.

6. Strategic decisions are concerned with

A. the details of day-to-day administration.

B. the disposition of the company’s resources.

C. the payment of wages.

7. While decision-making powers are commonly delegated to senior executives

A. the directors are not responsible to the shareholders for any mistakes which might be made.

B. they are not responsible for any errors of judgment.

C. the directors remain responsible to the shareholders for any mistakes which might be made.

8. The further ahead one plans

A. the more troubles there are likely to be.

B. the more one can anticipate problems and thus avoid them.

C. the less one can anticipate problems.

9. Tactical decisions are those by means of which the senior executives

A. carry out their own plans.

B. destroy the opposition.

C. carry out the plans prescribed by the board of directors.

10. The directors have to initiate long range plans with a view to ensuring

A. the achievement of the company’s objectives.

B. he maintenance of good relations with the senior executives.

С. compliance with the law.

 

 

Read information about managers and executives paying attention to the worlds in bold.