CAE Practice Tests
What can give rise to personal liability - ANS-INTENTIONAL injury or damage to person
or property
What is proper relationship between Board chair and CSE - ANS-They are partners with
different focus - CSE focuses on operations, Board chair focuses on
members/volunteers
Association policies should address these 3 areas - ANS-governance, management and
operations, public image and public policy
In order to be an informed partner with the Board the CSE should strive to - ANS-gather
and use data through formal and informal processes
What must be included in an association budget - ANS-An operating budget, capital
budget and cash budget
What is a consent agenda - ANS-a group of items batched together for approval by the
Board, routine, non-controversial, voted on as a group
What is typically included in an affiliation agreement - ANS-agreement binds both
organizations, sets how each is to be governed, extent to which one may act as agent
of other and how chapter can use name of parent
Bylaws include - ANS-description of governance structure, defines relations between
affiliated chapters/components, how power is allocated in association
Bad faith is based on - ANS-intentional disregard that causes injury, violates laws or
exceeds authority - actions that show gross negligence
What is the difference between actual and apparent authority - ANS-Actual authority is
official, apparent authority is inferred not specifically granted. Apparent authority, such
as actions of volunteer carry liability. Volunteer is agent of organization therefore
organization is liable
Sarbanes-Oxley Act policies ensure - ANS-that organizational funds are not misused or
embezzled - this is done by establishing an audit committee, having a code of ethics,
What can give rise to personal liability - ANS-INTENTIONAL injury or damage to person
or property
What is proper relationship between Board chair and CSE - ANS-They are partners with
different focus - CSE focuses on operations, Board chair focuses on
members/volunteers
Association policies should address these 3 areas - ANS-governance, management and
operations, public image and public policy
In order to be an informed partner with the Board the CSE should strive to - ANS-gather
and use data through formal and informal processes
What must be included in an association budget - ANS-An operating budget, capital
budget and cash budget
What is a consent agenda - ANS-a group of items batched together for approval by the
Board, routine, non-controversial, voted on as a group
What is typically included in an affiliation agreement - ANS-agreement binds both
organizations, sets how each is to be governed, extent to which one may act as agent
of other and how chapter can use name of parent
Bylaws include - ANS-description of governance structure, defines relations between
affiliated chapters/components, how power is allocated in association
Bad faith is based on - ANS-intentional disregard that causes injury, violates laws or
exceeds authority - actions that show gross negligence
What is the difference between actual and apparent authority - ANS-Actual authority is
official, apparent authority is inferred not specifically granted. Apparent authority, such
as actions of volunteer carry liability. Volunteer is agent of organization therefore
organization is liable
Sarbanes-Oxley Act policies ensure - ANS-that organizational funds are not misused or
embezzled - this is done by establishing an audit committee, having a code of ethics,
