Which of the following statements is (are) correct?
I. Shareholders elect the Chairman of the Board.
II. The board of directors has no control over whether dividends will be paid.
A) Only statement I is correct
B) Only statement II is correct
C) Both statements I and II are correct
D) Neither statement I nor II is correct

Question

Which of the following statements is (are) correct? 
I. Shareholders elect the Chairman of the Board.
II. The board of directors has no control over whether dividends will be paid.
A) Only statement I is correct
B) Only statement II is correct
C) Both statements I and II are correct
D) Neither statement I nor II is correct

Quizplus · Accepted Answer

Shareholders typically elect the board of directors, not the Chairman directly. The board of directors does have control over dividend payments, as they decide whether to declare dividends.

Which of the Following Statements Is (Are) Correct