The corporate form of business organization is often accompanied by separation of ownership and management.

Name: The corporate form of business organization is often accompanied by separation of ownership and management.
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Question

Quizplus · Accepted Answer

The statement is true. In a corporation, shareholders own the company and elect a board of directors to make major decisions, while professional managers are hired to run the company on a day-to-day basis. This creates a separation of ownership and management.

The Corporate Form of Business Organization Is Often Accompanied by Separation