In Many Corporations, There Is "Separation of Ownership from Control

question 127

Multiple Choice

In many corporations, there is "separation of ownership from control." What does this mean?

• A)The shareholders control the corporation, although the board of directors owns the corporation.
• B)The managers of the corporation run the corporation, although the shareholders own the corporation.
• C)The board of directors controls corporate operations, although the managers of the corporation own the corporation.
• D)Top corporate managers only make decisions that have been approved unanimously by shareholders.

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Definitions:

Statutory Law

A law enacted by the legislative branch of a government.

State Courts

Courts established by the laws of each state in the U.S. that have jurisdiction over disputes and cases within their respective states.

Supremacy Clause

A clause in the U.S. Constitution declaring that federal laws are the supreme law of the land and take precedence over state laws.

State Law

Laws established by individual states in the United States, as opposed to federal laws which apply to the entire country.