Multiple Choice QuestionIdentify a true statement about a board of advisors in an organization.Multiple choice question.It is subject to the regulations stipulated in the Sarbanes–Oxley Act.It lacks a legal status.It is more closely tied to the organization than its board of directors.It is selected by employees.
Question
Multiple Choice QuestionIdentify a true statement about a board of advisors in an organization.Multiple choice question.It is subject to the regulations stipulated in the Sarbanes–Oxley Act.It lacks a legal status.It is more closely tied to the organization than its board of directors.It is selected by employees.
Solution
The true statement about a board of advisors in an organization is: "It lacks a legal status."
Explanation: A board of advisors is typically an informal group that provides advice and expertise to an organization. Unlike a board of directors, a board of advisors does not have legal status and is not subject to the same regulations and responsibilities. They are not selected by employees and are not more closely tied to the organization than its board of directors. The Sarbanes-Oxley Act applies to publicly traded companies and their boards of directors, not to a board of advisors.
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