Final answer:
Top managers are individuals who make long-term strategic decisions for an organization. The influence of top executives over board nominations can impact shareholder interests. The correct option is A.
Step-by-step explanation:
Individuals in management who make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies are called top managers. Top managers are responsible for the overall performance and health of the entire organization or one of its major parts. They play a critical role in determining the company's direction and strategy, and they typically hold titles such as Chief Executive Officer (CEO), President, or Senior Vice President.
Regarding the role of a board of directors, it is designed to represent the shareholders' interests and ensure that the company is managed in their favor. In practice, however, top executives who run the firm often have significant influence over who gets nominated to the board, which can create a potential conflict of interest, as these executives may prioritize managerial over shareholder interests. Theoretically, shareholders should have a say in board nominations, but logistical and knowledge barriers often prevent this from being a reality.
When discussing types of leadership, authoritarian leadership is characterized by a top-down approach in communication and decision-making. An authoritarian leader makes decisions independently with little to no input from the group members. On the other hand, a democratic leader would encourage group participation in decision-making, and a laissez-faire leader would be much more hands-off, allowing group members to self-manage more actively.