Which of the following statements is true of the corporate form of business?
A) The board of directors sets policy for the corporation and appoints the officers.
B) Changes in the ownership of stock have a negative effect on the continuity of the corporation.
C) Any stockholder may commit the corporation to a contract.
D) It is easy for stockholders to lodge an effective protest against management.

Question

Quizplus · Accepted Answer

The board of directors is responsible for setting policy and appointing officers in the corporate form of business. Choices B, C, and D are all false statements about the corporate form of business.

Which of the Following Statements Is True of the Corporate