Which of the Following Statement Is Correct Regarding Control of the Firm

question 75

Multiple Choice

Which of the following statement is correct regarding control of the firm?

• A) Control of the firm ultimately rests with shareholders. They elect the board of directors, who then hire and fire management.
• B) Control of the firm ultimately rests with board of directors. They elect the management, who lead the company.
• C) Control of the firm rests with the executives that oversea the strategic planning.
• D) Control of the firm rests with regulatory bodies working in unison with executives.
• E) Control of the firm rests with government agencies and regulatory bodies working in unison with the board of directors.

---

Definitions:

Rightward

Used to describe movement towards the right, often in the context of shifts in supply or demand curves in economic graphs.

Tax Rate

The rate at which the government taxes an individual or corporation's income or earnings.

Loanable Funds

The total resources or funds available for borrowing, typically within a nation's financial markets, where savers supply funds and borrowers demand them.

Interest Income

Earnings received from deposit accounts like savings, or from investments like bonds, calculated as a percentage of the principal.