Final answer:
Shareholders are the corporation owners who elect the board of directors and have voting rights on major corporate decisions. They have the authority to influence corporate governance, but may lack the incentive to nominate alternative board members. The board ensures the firm runs in the interests of the shareholders, albeit executives often suggest board candidates. Option B is correct.
Step-by-step explanation:
Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are known as shareholders. The board of directors, elected by the shareholders, is intended to ensure that the firm is run in the best interests of its true owners - the shareholders. Shareholders, particularly in a public company, have the power to vote for the board of directors, who are responsible for hiring top executives to manage the company's daily operations. Although the top executives may have a strong influence in proposing candidates for the board, it is still the shareholders who ultimately confirm or elect the board members.
In practice, individual shareholders may lack the knowledge or motivation to nominate alternative directors, often deferring to the choices and recommendations made by those within the company. Nevertheless, the influence and corporate governance provided by shareholders through their voting rights is a fundamental aspect of the corporate structure, especially in listed companies where the number of investors can range from thousands to millions, making shareholder influence a critical component of corporate oversight.