Managers are typically hired by the board of directors, who are accountable to the shareholders. Shareholders may have the power to vote in new board members if they are unhappy with the current leadership, but they do not directly hire or fire managers.

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In Theory

Question 12

Multiple Choice

In theory,

A) managers are hired by the shareholders at the annual stockholders meeting. If the managers turn in a bad year, new ones get hired.
B) shareholders hire the managers to oversee the board of directors.
C) managers are hired by the board of directors; the board is accountable to the shareholders.
D) none of the above

Correct Answer: