How Can the Following Quotation Best Be Explained: "Stockholders Control

question 87

Multiple Choice

How can the following quotation best be explained: "Stockholders control the activities of a corporation"?

• A) All stockholders vote on all the major issues and problems that a company faces on a monthly basis.
• B) Stockholders are intricately involved in the daily operations of a corporation.
• C) Stockholders elect the board of directors, and this board is responsible for appointing corporate officers who manage the daily business of the corporation.
• D) Stockholders vote for the members of the board of directors, and this board makes all the daily business decisions for the corporation.
• E) Stockholders usually call company management and tell executives better ways to run the organization.

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