A group of individuals that formally represent the firm's shareholders and oversee the work of executives are referred to as ________.
A) agents
B) board of directors
C) managers
D) governing boards

Question

Quizplus · Accepted Answer

The board of directors are responsible for representing the interests of shareholders and monitoring the work of executives. A is incorrect because agents can refer to any employee of the firm who is acting on behalf of the company, not just those who represent shareholders. C is incorrect because managers are typically lower level employees who report to executives and do not have direct oversight of them. D is incorrect because governing boards is a more general term that can refer to any group of individuals who oversee the work of an organization, not just those that specifically represent shareholders.

A Group of Individuals That Formally Represent the Firm's Shareholders