Questions: What is the primary concern of a board of directors today? (Page 76) To make decisions about how to run the day-to-day affairs of the business To monitor the decisions made by managers on behalf of the company To determine whether or not to pay dividends to stockholders To watch out for the interests of the employees

The answer is: To monitor the decisions made by managers on behalf of the company.

Explanation for each option:

1. To make decisions about how to run the day-to-day affairs of the business: This is incorrect. The board of directors typically does not get involved in the day-to-day operations of a company. This responsibility is usually delegated to the company's management team, including the CEO and other executives.

2. To monitor the decisions made by managers on behalf of the company: This is correct. One of the primary roles of a board of directors is to oversee and monitor the actions and decisions of the company's management to ensure they align with the best interests of the shareholders and the company's long-term goals.

3. To determine whether or not to pay dividends to stockholders: While the board of directors does have the authority to decide on dividend payments, this is just one of many responsibilities and not the primary concern. The board's broader role is to ensure the company's overall strategic direction and governance.

4. To watch out for the interests of the employees: Although the board may consider the interests of employees as part of its governance responsibilities, its primary duty is to the shareholders. The board's main focus is on ensuring the company's success and sustainability, which indirectly benefits employees.