Introductory Business Law CLEP Prep Practice Exam

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Prepare for the Introductory Business Law CLEP Exam with our comprehensive quiz. Engage with multiple-choice questions designed to test your knowledge and understanding of key business law concepts. Ace your exam and earn college credit!

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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.