Florida Broker Practice Exam

What is the primary responsibility of the officers in a corporation?

1. To manage the daily operations

2. To elect the stockholders

3. To file taxes for the corporation

4. To ensure compliance with state laws

The correct answer is: To manage the daily operations

The primary responsibility of the officers in a corporation is to manage the daily operations. Officers, such as the CEO, CFO, and COO, are tasked with executing the company's strategic plans, overseeing daily activities, making operational decisions, and ensuring that the business runs smoothly. They play a crucial role in implementing the policies set by the board of directors and managing the workforce to achieve the corporation's goals. In contrast, stockholders are not elected by officers; rather, they are typically the owners of the corporation and have voting rights on major matters, such as electing the board of directors. Filing taxes is an important aspect of corporate governance, but it is usually managed by the accounting department or financial officers rather than being the primary focus of officers' responsibilities. Compliance with state laws is also essential, but it falls under the broader governance and oversight functions that may be shared with legal teams and board members, rather than being the sole duty of the officers.