Board of Directors Test

Every public company must have a "Board of Directors".

• True

• False

A typical board of directors has 5 - 10 members.

• True

• False

It is not wise to have an uneven number of members on the board of directors.

• True

• False

A board of directors is involved in the following corporate functions except for what?

• Help the company define it's objectives and fulfill it's goals.

• Determine who becomes a board member.

• Establish the company's stock dividend policies.

• Determine executive pay.

Members of a board of directors are elected by the companies shareholders.

• True

• False

This type of board of directors takes on the role of the CEO (Chief Executive Officer) if there is not one at any given time.

• Governing

• Trustee

• Executive

• Advisory

This type of board of directors bring various insight, and different perspectives and experiences to help the company meet its goals.

• Advisory

• Executive

• Trustee

• Governing

This individual leads and manages the board of directors.

• Secretary

• Chairperson

• Treasurer

• Trustee

An "Outsider" board of directors member is only involved with the company through their board membership duties and obligations.

• True

• False

Board of directors members are never paid.

• True

• False