Which of the Following Is True of Shareholders

question 21

Multiple Choice

Which of the following is true of shareholders?

• A) They cannot enter into contracts that bind the corporation.
• B) They cannot vote to elect the board of directors.
• C) They cannot take active charge in deciding fundamental changes in the corporation.
• D) They are considered agents of the corporation.

---

Definitions:

Delegate Tasks

The process of assigning responsibilities or authority to another person, usually from a manager to a subordinate, to carry out specific activities or tasks.

High Priority

Issues, tasks, or objectives deemed of utmost importance and that necessitate immediate attention or resources.

Leader's Term

The period during which an individual serves in a leadership position or role.

Remove a Leader

The action of dismissing or displacing an individual from a position of authority or leadership.