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 the management.
C) Managers oversee the members of the Board of Directors.
D) The stockholders elect the members of the board of directors.

Question

Quizplus · Accepted Answer

The statement "The stockholders elect the members of the board of directors" is correct as per typical corporate governance structure where the board of directors are elected by the shareholders. Option A is not correct as it suggests unethical behavior and compromising on principles. Option B is incorrect as the primary goal of directors is to oversee the management and ensure decisions are beneficial for the company as a whole, not just the management. Option C is also incorrect as the board of directors oversee and appoint the management of the company.

Which of the Following Is Correct