Unit VI – The board of directors

IV. Multiple choice

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.
C. 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.
C. 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.
C. 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.
C. 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 judgement.
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. the maintenance of good relations with the senior executives.
C. compliance with the law.

V Summarising

Because the top management is almost all the time under heavy pressure and their time
to analyze complex data and project future trends is likely to be limited it would be necessary
a long-term planning department in the company. A department like this would be small and
made up of top quality generally.
It is difficult to decide how far ahead to make a plan. The most advantageous to the
firm is an accurate long-term forecast.
If the companies want to launch new products, enter a new market or new industries it
will be necessary careful planning. Also the production side of the business must be geared to
keep pace with the changes in the market.
For companies is a difficult choice to be made between a policy of diversification and
short-term profit maximization. The risk of the failure can be reduced by choosing to produce
a range of goods and services. A policy of diversification can be equated broadly to an
insurance contract, and there is a price to be paid in both cases. That's why the managing
director has the often unenviable task of coordinate diverse activities for the good of the
business.

VIII. Insert may or might in the following sentences:

1. May I borrow your car?

2. I might never see you again.
3. It might rain, you’d better take a coat.
4. He said that it might rain.
5. We may as well stay here till the rain stops.
6. If we wave to him he might give us a lift.
7. “May I come in?” “Please do.”
8. May all your wishes come true.
9. He might be on the next train. We may as well wait.
10. “May I give you some advice?” “If you must.”
11. If you said that, he might be very offended.
12. You may be right, but I don’t think you are.
13. We’d better be early; there might be a crowd.
14. “I can’t think what to do.” “May I make a suggestion?”
15. I don’t think I’ll succeed but I might as well try.