Question

The board of directors for a corporation is elected by its:

Select one:
a. creditors
b. stockholders
c. managers
d. employees

Answer 1

The board of directors for a corporation is elected by its stockholders. Shareholders, who own the company, vote for the board of directors, who then hire top executives to run the firm on a daily basis. The more shares of stock a shareholder owns, the more votes they have for electing the board of directors.

Step-by-step explanation:

The board of directors for a corporation is elected by its stockholders.

When a firm decides to sell stock, it becomes a public company, and the shareholders are the owners of the company. The shareholders vote for the board of directors, who then hire top executives to run the firm on a daily basis.

The more shares of stock a shareholder owns, the more votes they are entitled to cast for the company's board of directors.