When a board of directors delegates authority to senior management, it remains liable for
When a board of directors delegates authority to senior management, it remains liable for:
A. All operational errors made by management
B. Failure to monitor and supervise management’s actions
C. No liability if delegation is in writing
D. Liability only to majority shareholders
Answer: B
Explanation: Directors cannot avoid oversight liability by delegation; they must monitor management to fulfill fiduciary duties.
