Which of the following is a responsibility of the Directors of a plc?

• A. Sign financial statements.
• B. Advertise quarterly profits.
• C. Set the company's tax rate.
• D. Provide personal guarantees for loans.

Answer: (A)

Directors sign the financial statements to take responsibility for what is reported. This act formalizes their role in approving the accounts and confirms they have ensured the statements give a true and fair view of the company’s financial position, results, and disclosures in line with the applicable accounting standards. The signing is part of the accountability process to shareholders and regulators, and it signals that the directors have overseen the preparation and presentation of the financial information.

Advertising quarterly profits isn’t a director responsibility and could mislead if figures aren’t guaranteed; profits are reported based on actual results and may vary. Setting the company’s tax rate is determined by tax laws and rates set by the government, not by directors. Providing personal guarantees for loans is not a standard duty of directors and depends on specific financing arrangements rather than a general responsibility.