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:

Costs and Efficiency

The analysis of expenses incurred in operation against the output or effectiveness achieved, aiming to maximize productivity while minimizing expenditure.

Staff Personnel

Employees who provide support, advice, and expertise in their specialized fields, aiding in decision-making and strategy formation.

Empowerment

The process of granting individuals the power and resources to take initiative and make decisions, aiming to enhance their efficacy and involvement in organizational tasks.

Delegation

The transfer of authority and responsibility from one person to another for the completion of specific activities or tasks.