In the publicly held firm:
A)patterns of ownership and control are centrally defined.
B)owners and managers are different groups.
C)control is delegated to the owners alone.
D)managers are hired directly by the owners.

Question

Quizplus · Accepted Answer

In publicly held firms, ownership is spread among a large number of shareholders and managers are hired to run the company on behalf of the owners. Therefore, owners and managers are two different groups, making option B the correct choice. Option A is incorrect because patterns of ownership and control are not centrally defined in such firms. Option C is also incorrect because control is delegated to both owners and managers. Option D is incorrect because managers are usually selected and hired by the board of directors, who are elected by the shareholders.

In the Publicly Held Firm