Which of the following statements is INCORRECT regarding the rights of shareholders?
I. Shareholders have voting power on major issues and ownership in a portion of the company
II. Shareholders have the right to transfer ownership and are entitled to dividends
III. Shareholders have the right to hire and fire management and select and appoint a chief executive
A)I and II
B)I, II, and III
C)I only
D)III only

Question

Quizplus · Accepted Answer

III is incorrect because shareholders do not have the direct right to hire and fire management or select and appoint a chief executive. These responsibilities typically fall to the company's board of directors, who are elected by the shareholders.

Which of the Following Statements Is INCORRECT Regarding the Rights