Question

Analyze the chart, which depicts a typical corporate structure.

A chart shows sample corporate structure. The shareholders are at the top, then the board of directors, and then the president or C E O. Below the President and C E O are 3 positions at the same level: the V P of sales, the V P of marketing, and the V P of production.

Based on the chart, the primary responsibility of shareholders is to

run the business by electing a board of directors, who then hire the company’s leaders.
run the business by electing a board of directors and hiring a president and other leaders.
make business decisions on the advice of a board of directors, a president, and other leaders.
make business decisions on the advice of a board of directors, who follow the expertise of leaders.

Answer 1

The best choice is the first option.

Rationale: The chart shows shareholders at the top who elect the board of directors; the board then appoints the president/CEO and other officers who run the company. Shareholders do not manage day‑to‑day operations or directly hire executives.