Which one of the following statements is true?
A) Corporations are required by law to report all activities to their stockholders each month.
B) Stockholders must approve major changes to corporate policies.
C) Stockholders must approve the sale of all goods and services by the company.
D) Corporations are required by law to have two stockholder meetings each year.
E) Stockholders may vote only by proxy.

Question

Quizplus · Accepted Answer

Stockholders do have the power to approve major changes to corporate policies as they have the ultimate authority in electing the board of directors, who in turn make decisions regarding the company's policies and strategies. However, they are not required to approve the sale of all goods and services or to be provided with monthly reports. While some corporations may have two stockholder meetings per year, this is not a legal requirement. Stockholders may vote in person or by proxy, but this is not relevant to the question of whether they must approve major changes to corporate policies.

Which One of the Following Statements Is True