Which of the following is true about shareholders?
A) Large corporations consist of a single shareholder,who participates in the corporation's day-to-day business.
B) Operational decisions are made by workers hired by the shareholders.
C) Shareholders who are dissatisfied with corporate performance cannot sell their shares or combine with others to oust the current board and its managers.
D) Shareholders may decide,collectively,to sell their interests to another company that seeks to acquire its assets.

Question

Quizplus · Accepted Answer

Shareholders have the power to collectively sell their interests to another company, which is known as a merger or acquisition. This is a common strategy for companies looking to expand their operations or gain access to new markets. Option A is incorrect because large corporations typically have multiple shareholders, and the day-to-day business is overseen by a board of directors and executive management. Option B is incorrect because operational decisions are typically made by the executive management team, who are accountable to the board of directors and shareholders. Option C is incorrect because shareholders have the right to vote on important corporate decisions, including the appointment of board members and changes to the company's articles of incorporation or bylaws. Additionally, dissatisfied shareholders can vote to replace existing board members and executives with new ones who they believe will better serve the company's interests.

Which of the Following Is True About Shareholders