How Do the Shareholders of Most Corporations Exercise Their Control

question 20

Multiple Choice

How do the shareholders of most corporations exercise their control of that corporation?

• A) by voting on issues that concern them
• B) by electing members of a board of directors
• C) by vetting the decisions of the board of directors
• D) by providing oversight of the day-to-day running of the corporation

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Definitions:

Sales Agent

An individual or entity authorized to sell or negotiate the sale of goods or services on behalf of another party, known as the principal.

Domestic Corporations

Businesses incorporated within a particular state or country, subject to its laws and regulations.

Qualify to do Business

The process by which a company meets the legal requirements to conduct business in a jurisdiction other than where it was established.

NCAA

Stands for the National Collegiate Athletic Association, which is a nonprofit organization that regulates student athletes from over 1,200 North American institutions and conferences.