In most corporations, the owners exercise indirect control of the corporation.

Question

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In most cases, the owners of a corporation hold shares of ownership, which give them the right to vote on important decisions in the company, such as electing the board of directors. The board of directors then hires executives to manage the day-to-day operations of the corporation, giving the owners indirect control through their elected representatives.

In Most Corporations, the Owners Exercise Indirect Control of the Corporation