The stockholders elect a board of directors and the board determines corporate policies and selects the corporate officers.

Question

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This is a basic principle of corporate governance. The stockholders, as owners of the company, elect a board of directors to represent their interests and make important decisions on their behalf. The board then selects the corporate officers, such as the CEO, CFO, and COO, to manage the day-to-day operations of the company and implement the policies that the board has established.

The Stockholders Elect a Board of Directors and the Board