What is the role of board of directors?

They use financial data to determine how well the organization is doing and hold leaders accountable for meeting budgets and other obligations
They use financial data to determine if they want to purchase stocks in hopes of a financial return
They use financial data to determine if the company is capable of paying back a new or current loan
They collect financial data and record them daily in computer systems for compiling at the end of the month

1 answer

The primary role of the board of directors includes overseeing the overall direction and strategy of the organization, ensuring that the organization adheres to its mission and goals, and making key decisions regarding the company’s operations and financial health. Among the options provided, the first statement aligns most closely with the role of the board of directors:

"They use financial data to determine how well the organization is doing and hold leaders accountable for meeting budgets and other obligations."

This reflects the board's responsibility to monitor performance, oversee management, and ensure that the organization is managing its resources effectively to achieve its objectives. The other statements pertain more to specific financial activities or roles rather than the overarching duties of a board of directors.