Executive directors have the advantage that they are ______. Involved with the ________ affairs. If the board of directors wishes to move in a ______ direction the executive directors will know whether such a ________ of action is practicable. For example, the board might wish to ______ their products in a particular ________ market. The market would be profitable for the company, but the ________ director knows that his teams of salespeople lack the experience to take advantage of the situation. Or perhaps the board would like to _______ the advertising expenditure during the ______ year but the _______ director knows that the company will have to meet some heavy commitments during the _______ months and it would be better to _______ the campaign.
Perhaps the best board is one which contains a _______ of executive and non-executive directors. In this way the board has the ______ of some directors who know the practical problems ________ by the business, while others bring their own ________ of expertise to the boardroom discussions.
Task 6. Vocabulary 2
Multiple choice. Read the text again and check that you have understood the main points by choosing the best answer a, b or c to these questions:
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 hold.
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 top have a personal stake in the business and thus be affected by their decision.
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.
