The Nature of the Claim on the Corporation Represented by Common

question 28

Essay

The nature of the claim on the corporation represented by common shareholders' shares is that they are entitled only to the remaining property of the corporation on dissolution after other claims have been paid and that they have a right to vote for the election of directors, to appoint the auditor, and on proposals made to them.As such, the shareholders' role is essentially a passive one.They are not involved in management.Is this a complete and accurate description regarding the role that shareholders play in corporations?

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Definitions:

Conformity

The act or behavior of aligning one's beliefs, attitudes, and actions to those of a group or societal norms, often to fit in or be accepted by others.

Social Loafing

A phenomenon where the effort of individuals towards a common goal declines when they operate in a group versus solo efforts.

Social Loafing

A situation in which people put in less effort towards achieving an objective when they are part of a team than when they operate independently.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups. Cultural norms strongly influence social behavior and interactions.