Final answer:
The statement is false; controlling refers to the management function of measuring and evaluating performance, not the direct overseeing of operations which is related to operating. The board of directors ensures the company's strategic direction aligns with shareholder interests, distinct from day-to-day management handled by top executives.
Step-by-step explanation:
The statement "Controlling means overseeing the company's day-to-day operations" is False. Controlling in a business context typically refers to the process of monitoring and evaluating performance to ensure that organizational goals are achieved and standards are met.
It is a function of management involving measuring achievement against established objectives and taking corrective action when necessary.
On the other hand, the term 'overseeing the company's day-to-day operations' is more closely related to the management function of operating or executing day-to-day tasks.
In the context of corporate governance, the board of directors plays a vital role in ensuring that the firm operates in the shareholders' interests. However, their function is more strategic than hands-on management.
The top executives, such as the CEO, CFO, and other C-level officers, typically handle the everyday management and operations of the company.
In addition, these top executives often have significant influence in determining candidates for the board, which can create a situation where shareholders' interests may not always be the priority, as few shareholders have the incentive or resources to nominate alternative board members.