The Board of Directors Has the Power to Act on Behalf

question 122

True/False

The board of directors has the power to act on behalf of the shareholders to hire and fire the
operating management of the firm. In a legal sense, the directors are "principals" and the
shareholders are "agents".

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Definitions:

Employed Category

A classification for individuals who are currently holding a job or are in employment.

Unemployed Category

A classification used in labor statistics to describe individuals who are not currently employed but are actively seeking employment.

Not in the Labor Force

Individuals not in the labor force are those who are not seeking employment and are not currently employed, including retirees, students, and homemakers.

Employed Category

A classification within the labor force that includes all individuals who are gainfully employed, either in full-time or part-time positions.