Final answer:
The correct answer to the question is the board of directors, which is a group elected by shareholders to make policy decisions and ensure the firm operates in the interest of its owners, the shareholders. The correct option is C) board of directors
Step-by-step explanation:
A panel of persons who are elected by shareholders and make policy decisions concerning the operation of a corporation is known as the board of directors. This group helps to ensure that the firm is run in the interests of the shareholders, who are the true owners of the company.
However, it's important to note that the top executives often have a significant influence in choosing the candidates for the board, which can sometimes lead to conflicts of interest.
Despite this, the board is supposed to act as the first line of corporate governance and oversight for top executives, with other institutions like auditing firms and large shareholders also playing key roles in ensuring corporate accountability. The correct option is C) board of directors