Role of the Board of
Directors – Practice
2026-VERSION WITH
QUALITY QUESTIONS
AND WELL RATIFIED
ANSWERS 100%
CORRECT WITH
RATIONELS.
,1. What is the primary role of a Board of
Directors?
A. Managing daily operations
B. Setting strategic direction
C. Hiring all employees
D. Preparing financial statements
Answer: B
Rationale: The board focuses on
governance and strategy, not day-to-day
operations.
2. Who appoints the CEO?
A. Shareholders directly
B. Employees
,C. Board of Directors
D. Government
Answer: C
Rationale: The board is responsible for
hiring, evaluating, and, if necessary,
removing the CEO.
3. Which duty requires directors to act
in the best interest of the company?
A. Duty of care
B. Duty of loyalty
C. Duty of obedience
D. Duty of reporting
Answer: B
Rationale: Duty of loyalty ensures
, directors prioritize the company over
personal interests.
4. The duty of care refers to:
A. Avoiding conflicts of interest
B. Making informed decisions
C. Ensuring legal compliance
D. Protecting shareholders
Answer: B
Rationale: Directors must act with
diligence and reasonable judgment.
5. Which function is NOT a board
responsibility?
Directors – Practice
2026-VERSION WITH
QUALITY QUESTIONS
AND WELL RATIFIED
ANSWERS 100%
CORRECT WITH
RATIONELS.
,1. What is the primary role of a Board of
Directors?
A. Managing daily operations
B. Setting strategic direction
C. Hiring all employees
D. Preparing financial statements
Answer: B
Rationale: The board focuses on
governance and strategy, not day-to-day
operations.
2. Who appoints the CEO?
A. Shareholders directly
B. Employees
,C. Board of Directors
D. Government
Answer: C
Rationale: The board is responsible for
hiring, evaluating, and, if necessary,
removing the CEO.
3. Which duty requires directors to act
in the best interest of the company?
A. Duty of care
B. Duty of loyalty
C. Duty of obedience
D. Duty of reporting
Answer: B
Rationale: Duty of loyalty ensures
, directors prioritize the company over
personal interests.
4. The duty of care refers to:
A. Avoiding conflicts of interest
B. Making informed decisions
C. Ensuring legal compliance
D. Protecting shareholders
Answer: B
Rationale: Directors must act with
diligence and reasonable judgment.
5. Which function is NOT a board
responsibility?
