What is the main role of a board of directors in a business?

The primary role of a board of directors in a business is to select upper-level management, including the CEO. The board is responsible for overseeing the overall strategic direction of the company and ensuring that it is being managed effectively. By appointing and evaluating top executives, the board ensures that the organization is led by qualified individuals who align with the company’s goals and objectives. This governance function is critical, as the board also provides oversight and accountability, ensuring that the management is acting in the best interests of the shareholders and other stakeholders.

The other roles mentioned do not align with the main responsibilities of a board. Managing daily operations and supervising employees falls under the purview of management, not the board. While the board may have input on financial matters, it does not typically handle all financial transactions directly—it depends on management and financial officers for those functions. Determining employee salaries and benefits is usually a task for management, guided by broader policies set forth by the board but not performed directly by them. Thus, the board's principal focus remains on oversight and selection of upper management, making the selection of upper-level management, including the CEO, the correct answer.