Regarding the separation of corporate ownership and management,which of the following is a true statement?

Question

Quizplus · Accepted Answer

The separation of corporate ownership and management means that stockholders own the business, but a board of directors is appointed to manage the business. Therefore, choice D is the correct statement. The corporate officers are appointed by the board of directors, not the other way around (choice A is incorrect). While stockholders have a say in important decisions through voting, their input in day-to-day operations is limited (choice B is incorrect). Finally, while some stockholders may have expertise in managing businesses, they do not have the official authority to do so (choice C is incorrect).

Regarding the Separation of Corporate Ownership and Management,which of the Following