Final answer:
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.