[Section A] True or False: Executive Directors are full-time employees involved in the daily management of the company, whereas Non-Executive Directors (NEDs) are part-time and provide independent oversight.

Answer options:

True

False

How to approach this question

Recall the roles of the two types of directors on a unitary board.

Full Answer

A.True✓ Correct

Executive Directors (like the CEO or CFO) are full-time employees responsible for the day-to-day running of the business. Non-Executive Directors (NEDs) do not engage in daily management; they attend board meetings to provide independent advice, strategy, and scrutiny.

Common mistakes

Assuming NEDs have no real power. NEDs are crucial for governance and often sit on audit and remuneration committees.

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Practice the full ACCA BT — Business & Technology Practice Exam 2

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