The Board of Directors of a Corporation Is Elected by the _____

question 121

Multiple Choice

The board of directors of a corporation is elected by the _____.

• A)corporation's employees
• B)bondholders and other creditors
• C)corporate officers
• D)stockholders

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Definitions:

Compensatory Stock Option Plans

Employee benefit plans which grant the option to purchase company stock at a discounted price as compensation or incentive.

Performance-Based Stock Option Plans

Incentive programs that grant options to employees as rewards for achieving specific performance targets.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, often at a set price.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, usually with fixed dividends.