Primary Responsibilities of the Board of Directors

XYZ Corporation has been facing challenges related to its governance structure, particularly in the effectiveness of its Board of Directors. The Board is comprised of both executive and non-executive members, and there is an ongoing debate about whether the current composition promotes adequate oversight and independence. Recent shareholder meetings have raised concerns about potential conflicts of interest and the overall strategic direction taken by the management team.

As a member of the finance team tasked with assessing the Board's efficiency, you need to answer a key question regarding the roles filled by the Board of Directors. Which of the following best describes one of the primary responsibilities of the Board of Directors?