In Many Corporations, There Is "Separation of Ownership from Control

question 127

Multiple Choice

In many corporations, there is "separation of ownership from control." What does this mean?

• A)The shareholders control the corporation, although the board of directors owns the corporation.
• B)The managers of the corporation run the corporation, although the shareholders own the corporation.
• C)The board of directors controls corporate operations, although the managers of the corporation own the corporation.
• D)Top corporate managers only make decisions that have been approved unanimously by shareholders.

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Definitions:

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The starting position of the supply curve before any changes in market conditions or external factors.

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A situation in which demand for a good or service exceeds its supply in a market, often leading to higher prices.