Why Do Shareholders of Public Companies Need to Appoint a Board

question 31

Multiple Choice

Why do shareholders of public companies need to appoint a board of directors to represent their interests?

• A) because of the separation of ownership and control
• B) because employees of a company cannot be shareholders
• C) because the board of directors itself is made up of shareholders
• D) because they want tighter control over day-to-day operations of a company

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Definitions:

Practitioners

Individuals engaged in the active practice of a profession, particularly in areas like health, law, and education, applying specialized knowledge and skills.

Counseling Skills

Competencies used by professionals to effectively facilitate the counseling process, including communication, empathy, and problem-solving skills.

Personal Crisis Experience

An intense personal situation characterized by a significant challenge or problem that deeply affects an individual's mental or emotional well-being.

Group Supervision

A process in which multiple individuals (usually professionals in training) receive guidance and feedback on their work from a supervisor in a group setting.