Question

which of the following is true for corporate stockholders? group of answer choices corporate stockholders are personally liable for the company's debts they elect the chief executive officer. they determine the maturity through a ballot to each stockholder. they elect the board of directors. none of these they determine the dividend through a ballot to each stockholder.

Answer 1

Corporate stockholders elect the board of directors of a company; they are not involved in the direct election of executives or in setting specific company policies such as dividend distribution or stock maturity dates.

Step-by-step explanation:

Corporate stockholders are not personally liable for the company's debts; this liability is limited to the amount they have invested in the corporation. They do not elect the chief executive officer directly nor have a say in the maturity of the stocks through a ballot. Stockholders do not determine the dividend directly but may receive recommendations from the board of directors.

The correct statement is that corporate stockholders elect the board of directors. The board then has the responsibility to hire top executives and ensure the firm operates in the best interests of the shareholders, even though top executives often influence the choice of board candidates.