Stockholders in a corporation entrust control over the company's daily operations to managers selected by the board of directors to run the company.

Question

Quizplus · Accepted Answer

This statement is true. Stockholders elect the board of directors, who in turn select and oversee the company's managers. The managers are responsible for the day-to-day operations of the company, but ultimately report to and are accountable to the board of directors, who are accountable to the stockholders.

Stockholders in a Corporation Entrust Control Over the Company's Daily