Read the following and give response:

The importance of this section varies by plan. If a new venture organizes as a corporation, it is legally required to have a board of directors. A board of directors is a panel of individuals elected by a corporation's shareholders to oversee the management of the firm. In a very early stage firm, or a small firm, the board may be restricted to the principles running the firm. In these instances, the board serves little more than a legal function. In other instances, however, the board plays an active role in the management and oversight of the firm.