Question

How do the shareholders who own a company choose the actual company managers?

a. By democratic vote
b. By board of directors' decision
c. By employee recommendation
d. By government intervention

Answer 1

Shareholders vote for a board of directors based on the amount of stock they own, and this board then hires the company managers.

Step-by-step explanation:

Shareholders of a public company use a democratic process to elect the company's board of directors. The shareholders cast their votes based on the amount of stock they own; the more shares a shareholder has, the more voting power they wield. After being elected, it is the board of directors' decision to hire the actual company managers who will run the daily operations. Therefore, the answer to how shareholders choose company managers is through the board of directors they elect.