What is the primary purpose for establishing a board of dire

What is the primary purpose for establishing a board of directors? O it\'s a government regulation required in most countries to assure management is well compensated O to bring in expertise from competitors O to serve the best interests of the outside shareholders

Solution

Answer is D.

Company is an artificial person and the shareholders are in large proportion. Being an artificial person, a company cannot take the decisions. Therefore, the shareholders appoint the Directors who form a group known as Board of Directors.
The Board of Directors appointed acts on the behalf of the large number of shareholder for their interest and company’s growth.