The factor that distinguishes owners from the board of directors is that:
A) the owners serve as an intermediate group for shareholders.
B) the owners maintain legal control of the organization.
C) the owners are charged with overseeing the general direction of the firm.
D) the owners are elected by the shareholders.

Question

Quizplus · Accepted Answer

The owners, also known as shareholders, maintain legal control of the organization through their ownership of shares. The board of directors is responsible for overseeing the general direction of the firm but does not have legal control over the organization. Therefore, option B is the correct answer.

The Factor That Distinguishes Owners from the Board of Directors