Regarding the Separation of Corporate Ownership and Management,which of the Following

question 58

Multiple Choice

Regarding the separation of corporate ownership and management,which of the following is a true statement?

• A)The corporate officers elect the board of directors.
• B)The corporation runs better with day-to-day input from stockholders.
• C)None of the stockholders have the ability to manage the business of the corporation.
• D)Stockholders own the business,but a board of directors appoints corporate officers to manage the business.

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Definitions:

Total Production

The total output of goods or services produced by an individual firm or an entire industry over a specific period.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a good or service) more efficiently than another activity.

Opportunity Cost

The loss experienced from bypassing the following superior alternative in the course of decision-making.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.