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Board Development & Governance Flashcards

7 cards from real CNE practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 Board Development & Governance flashcards as text
  1. Which of the following is the best indicator that a board has strong fiduciary oversight of finances?

    Answer: The board receives and reviews regular financial statements against budget

    Regular review of financial statements compared to the approved budget is a core fiduciary responsibility of the board.

  2. What is 'board succession planning' primarily designed to address?

    Answer: Ensuring continuity of board leadership through planned transitions

    Succession planning identifies and prepares future board leaders so governance continuity is maintained during officer transitions.

  3. A board that 'rubber stamps' every executive director recommendation is failing which governance responsibility?

    Answer: Independent oversight and critical judgment

    The board's oversight role requires independent evaluation of management recommendations, not automatic approval.

  4. Which statement best describes the relationship between the board and the executive director?

    Answer: The board sets policy and direction; the ED manages day-to-day operations

    The board governs and sets strategic direction while the executive director is responsible for operational management and implementation.

  5. A written board member agreement that outlines attendance, giving, and committee expectations is best described as a:

    Answer: Board member job description or commitment form

    A board member job description or commitment form clarifies expectations and creates mutual accountability between the board member and organization.

  6. Which of the following is an example of the board overstepping into management (micromanagement)?

    Answer: Directing individual staff members on their daily tasks

    Directing staff members is an operational function that belongs to the executive director, not the board.

  7. In a nonprofit, 'board self-assessment' is best used to:

    Answer: Help the board identify governance strengths and areas for improvement

    Board self-assessment is a governance tool that helps the board reflect on its own effectiveness and identify development priorities.