Shareholders in a Closely Held Corporation Can Control the Rights

question 43

True/False

Shareholders in a closely held corporation can control the rights and responsibilities they have to each other by a shareholders' agreement.

---

Definitions:

Top Management

The highest level of management in an organization, responsible for overall strategy and policy-making.

Decentralization

The distribution of decision-making powers from a central authority to lower levels in an organization or across various geographic locations.

Quality Managers

Professionals responsible for monitoring and maintaining the quality of products and services in a company to meet specified standards.

Responsibility Accounting

A system of accounting in which different sections of an organization are evaluated on the basis of their financial performance and managers are held accountable for operational results.