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Although Stockholders Are Legal Owners,CEOs Do Not Always Pursue Stockholders

Question 24

Multiple Choice

Although stockholders are legal owners,CEOs do not always pursue stockholders' interests.CEOs can pursue their own interests because


A) they can use their authority over corporate funds to satisfy their desires for status, power, and income.
B) they have the ability to initiate a leveraged buyout.
C) an outside director will not have knowledge of inside operations if he or she chairs the board.
D) stockholders are the weakest stakeholder group because they are removed from operations.
E) stockholder meetings are not required.

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