What is the primary role of a board of directors?

• A. To advise marketing strategies for the company
• B. To oversee the activities of a company and make major decisions
• C. To manage day-to-day operations of the business
• D. To develop product pricing strategies

Answer: (B)

The primary role of a board of directors is to oversee the activities of a company and make major decisions. This governing body is responsible for providing strategic direction, ensuring that the company is adhering to its mission, and safeguarding the interests of shareholders and stakeholders. The board is involved in approving significant policies, financial oversight, and accountability that guides the organization.

Unlike managing day-to-day operations, which is typically handled by the company's executive team or management, the board focuses on long-term goals and compliance with legal and ethical standards. Their role includes hiring and evaluating the performance of top executives, approving major capital expenditures, and endorsing strategic initiatives.

This distinction highlights the board's governance function as opposed to the operational roles fulfilled by other positions in the company, such as marketing or product development teams.