How are management decisions executed in a corporation?(1 point)

Question

Responses

A board of directors is formed to make management decisions, consisting of every shareholder with at least a 10% stake in ownership of the corporation.
A board of directors is formed to make management decisions, consisting of every shareholder with at least a 10% stake in ownership of the corporation.

The shareholder with the largest controlling stake gets ownership status and is entitled to make all management decisions.
The shareholder with the largest controlling stake gets ownership status and is entitled to make all management decisions.

The shareholders elect a board of directors that is responsible for management decisions and day-to-day operations.
The shareholders elect a board of directors that is responsible for management decisions and day-to-day operations.

The shareholders are tasked with appointing corporate officers that are responsible for management decisions.

Answer 1

The correct response is:

The shareholders elect a board of directors that is responsible for management decisions and day-to-day operations.

In a corporation, shareholders typically elect a board of directors, which is tasked with overseeing the management and making strategic decisions. The board, in turn, may appoint corporate officers who handle the day-to-day operations.