Future Business Leaders of America (FBLA) Business Law Practice Exam

What role is responsible for running the day-to-day affairs of a corporation?

1. Corporate officer

2. Director

3. Corporation

4. Chairperson

The correct answer is: Corporation

The correct choice for running the day-to-day affairs of a corporation is the corporate officer. Corporate officers, such as the CEO, CFO, and COO, are tasked with the management and operational responsibilities of the company. They implement the policies set by the board of directors, make key decisions regarding the daily operations, and oversee various departments within the organization. The role of a director is primarily strategic rather than operational. Directors focus on policy-making, corporate governance, and overall direction, whereas corporate officers handle the execution of these strategies in everyday business activities. The term "corporation" refers to the legal entity itself, which is an abstract concept that does not perform actions independently. It is comprised of shareholders, directors, and corporate officers who operate it. The chairperson typically leads the board of directors and may guide high-level meetings and decisions but does not manage daily operations. Therefore, the role that directly manages and operates the corporation's daily functions is the corporate officer.