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:

Potential GDP

The highest level of economic output that an economy can sustain over the long term without increasing inflation.

Capital Spending

Expenditure by businesses on physical assets like buildings, machinery, and equipment to enhance their capacity or efficiency.

Privatization

The process of turning government enterprises into private enterprises.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.