Which of the Following Is True of Shareholders

question 17

Multiple Choice

Which of the following is true of shareholders?

• A) They can select the board of directors who will set corporate policy.
• B) They have direct control over the corporation's operation.
• C) They do not have any right to vote.
• D) They are not the owners of the corporation.

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Definitions:

Management

Management involves the processes of organizing, planning, directing, and controlling resources efficiently and effectively to achieve predetermined objectives.

Retained Earnings

The portion of a company's profits not distributed as dividends but retained for reinvestment in the business or to pay debt.