Which decision taken by the Board of Directors is deemed incorrect?

The decision regarding material purchases and determining minimum inventory levels is considered incorrect primarily because such decisions typically fall under the operational authority of management rather than the board of directors. The Board’s role is generally focused on high-level strategic decisions and oversight rather than day-to-day operational activities.

Mergers and takeovers, as well as acquisitions and disposals of large or valuable assets, are significant strategic decisions that require board approval due to their potential impact on the organization’s direction and financial health. These actions often involve substantial resources, legal considerations, and potential changes to the company structure, which necessitate a higher level of scrutiny and governance.

Repayment of foreign currency transactions, while important, is also generally aligned with management’s operational responsibilities. Such activities involve the execution of financial obligations rather than strategic oversight.

In summary, while all these activities are essential to the firm's operations and strategic trajectory, the responsibility for material purchases and setting inventory levels is typically not reserved for the board, thus rendering this decision incorrect in the context of appropriate governance structures.