Which of the following is correct?
A)Management is under constant pressure from directors to produce pleasing financial results,whatever it takes.
B)Directors oversee the managers of the company and have the primary goal of ensuring that financial decisions benefit management.
C)Managers oversee the members of the Board of Directors.
D)The stockholders elect the board of directors.

Question

Quizplus · Accepted Answer

The stockholders elect the board of directors, who then oversee and make decisions regarding the company's management and finances. Option A is incorrect as it suggests that management takes any actions to meet the financial goals imposed by the board of directors. Option B is incorrect as it suggests that financial decisions are made to benefit management, which is not necessarily true. Option C is incorrect as it places the managers above the board of directors, which is not the case in a typical corporate hierarchy.

Which of the Following Is Correct