Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

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What type of power does a director of a corporation typically have?

Financial
Executive
Legislative
Judicial

The correct answer is: Executive

Directors of corporations typically have executive power, meaning they have the authority to make decisions and manage the operations of the corporation. Financial power (option A) typically refers to the control and management of finances and investments, which is typically held by a Chief Financial Officer or Treasurer. Legislative power (option C) is the power to create laws and is usually held by government officials. Judicial power (option D) is the power to interpret laws and resolve legal disputes, which is typically held by judges or lawyers. Therefore, option B is the most suitable answer as it accurately reflects the main role and responsibility of a director in a corporation.