Control of the ﬁrm ultimately rests with shareholders. They elect the board of directors, who, in turn,
hire and ﬁre management.

Name: Control of the ﬁrm ultimately rests with shareholders. They elect the board of directors, who, in turn, hire and ﬁre management.
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Question

Quizplus · Accepted Answer

This statement reflects the basic principle of corporate governance, where shareholders have ultimate control over the management through their ability to elect the board of directors.

Control of the ﬁRm Ultimately Rests with Shareholders