The Board of Directors of a Corporation Are Elected By

question 261

Multiple Choice

The board of directors of a corporation are elected by:

• A) top managers
• B) shareholders
• C) current board members
• D) the president
• E) all of the other choices have equal votes

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Definitions:

Stockholders' Approval

Stockholders' approval is the consent given by shareholders for certain business decisions or corporate actions, typically during a vote at a shareholders' meeting.

Financial Accounting Standards Board

An independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Assets and Liabilities

Assets are resources owned by a business that have economic value, while liabilities are obligations a business owes to others.

Owner's Equity

The owner's residual interest in the assets of the business after deducting liabilities.