By creating a corporation and issuing stock, an entrepreneur gives up a measure of control to
A) creditors.
B) the government.
C) its members.
D) a board of directors.
E) the Securities and Exchange Commission (SEC).

Question

By creating a corporation and issuing stock, an entrepreneur gives up a measure of control to
A) creditors.
B) the  government.
C) its members.
D) a  board of directors.
E) the  Securities and Exchange Commission (SEC).

Quizplus · Accepted Answer

By creating a corporation and issuing stock, an entrepreneur effectively gives up a measure of control to a board of directors. The board is elected by the shareholders to make major decisions and oversee the management of the corporation.

By Creating a Corporation and Issuing Stock, an Entrepreneur Gives