Which one of the following parties has ultimate control of a corporation?
A) Chairman of the board
B) Board of directors
C) Chief executive officer
D) Chief operating officer
E) Shareholders

Question

Quizplus · Accepted Answer

Shareholders have ultimate control of a corporation as they elect the board of directors, which in turn hires the CEO and makes major decisions related to the company's operations. The chairman of the board may also have significant influence, but their authority ultimately derives from the board of directors, who are accountable to the shareholders. The CEO and COO are employees of the corporation and are responsible for managing day-to-day operations, but they do not have ultimate control.

Which One of the Following Parties Has Ultimate Control of a Corporation