Final answer:
The notion that a corporation must have specific officers including the president, vice president, treasurer, and secretary is false, as corporate statutes typically allow for flexibility in officer roles. The board of directors, elected by shareholders, provides oversight and governance to ensure the corporation operates in the shareholders' interests, despite potential executive influence on board selection. The correct option is b. False.
Step-by-step explanation:
The statement that a corporation must have a president, vice president, treasurer, and secretary as officers is false. While many corporations do follow this traditional structure, it is not a legal requirement in all jurisdictions.
Instead, corporate statutes typically allow for flexibility in the officers appointed by a corporation. The board of directors is elected by the shareholders and is responsible for overseeing the management and setting the broader strategy for the corporation, which includes selecting the various officers who will manage the corporation's daily affairs. Although these roles are common, they are not an absolute requirement for all corporations.
A corporation is a legal entity owned by its shareholders, who have limited liability. The shareholders rely on the board of directors for oversight and governance to ensure that the corporation operates in their interest. However, the practical application can differ, as the top executives who run corporations have a substantial influence over the selection of board candidates.
This influence can sometimes lead to conflicts of interest or governance issues if not properly checked, which emphasizes the importance of robust corporate governance practices. The correct option is b. False.