Asked by Eugene Dioso on May 28, 2024
Verified
Control of the firm ultimately rests with shareholders. They elect the board of directors, who then hire and fire management.
Shareholders
Individuals or entities that own shares in a corporation, giving them partial ownership and entitlement to a portion of the profits.
Board Of Directors
A group of individuals elected to represent shareholders and oversee the major decisions and policies of an organization.
Management
The process of directing and controlling a group of people or an organization in order to achieve a goal.
- Apprehend the challenges of agency and their repercussions on organizational processes.
- Understand the function and influence of stakeholders in the governance of corporations.
Verified Answer
SA
Subham AgarwalJun 01, 2024
Final Answer :
True
Explanation :
Shareholders are the ultimate owners of a firm and exercise control by electing the board of directors, who are responsible for overseeing the company's management and making key decisions, including hiring and firing the top management.
Learning Objectives
- Apprehend the challenges of agency and their repercussions on organizational processes.
- Understand the function and influence of stakeholders in the governance of corporations.