Which of the following is correct?
A)Shareholders elect the managers of companies who are then overseen by directors.
B)Managers are elected by shareholders.
C)Shareholders elect the directors who then oversee the performance of management.
D)Managers appoint the directors who then pass information to shareholders.

Question

Quizplus · Accepted Answer

Shareholders have the right to elect directors, who are responsible for overseeing the performance of the management team. The directors hire and review the performance of the managers. Therefore, option C accurately describes the process in which shareholders exercise their ownership rights in a company.

Which of the Following Is Correct