Question

Analyze the chart, which depicts a typical corporate structure.

Based on the chart, the primary responsibility of shareholders is to



run the business by electing a board of directors, who then hire the company’s leaders.


run the business by electing a board of directors and hiring a president and other leaders.


make business decisions on the advice of a board of directors, a president, and other leaders.


make business decisions on the advice of a board of directors, who follow the expertise of leaders.

Answer 1

Answer: A: run the business by electing a board of directors, who then hire the company’s leaders.

Explanation: right for the test

Answer 2

Answer: the correct answer is run the business by electing a board of directors, who then hire the company’s leaders.

Explanation: in reality shareholders have to vote to choose the directors so they can hire the general manager and managers who can implement the best policies for the benefit of the company and its shareholders.