How can the following quotation best be explained: "Stockholders control the activities of a corporation"?
A) All stockholders vote on all the major issues and problems that a company faces on a monthly basis.
B) Stockholders are intricately involved in the daily operations of a corporation.
C) Stockholders elect the board of directors, and this board is responsible for appointing corporate officers who manage the daily business of the corporation.
D) Stockholders vote for the members of the board of directors, and this board makes all the daily business decisions for the corporation.
E) Stockholders usually call company management and tell executives better ways to run the organisation.

Question

Quizplus · Accepted Answer

Stockholders elect the board of directors, and this board is responsible for appointing corporate officers who manage the daily business of the corporation. The board of directors is accountable to the stockholders and makes decisions on behalf of the company, but stockholders do not typically make daily business decisions or tell executives how to run the organization.

How Can the Following Quotation Best Be Explained: "Stockholders Control