Board instruction (2015 Q2.C of CFA past exam paper)

[Mr.E]

If board instructs foundation to act conservatively, does it not affect foundation to have lower ability to take risk as they are constrained?

The answer is it does not affect ability to take risk. But aren’t they constrained by Board that limits their ability?

2015 Q2.C of CFA past exam paper

[S2000magician]

@Mr.E

But aren’t they constrained by Board that limits their ability?

They’re constrained in their willingness, not their ability.