Businesses are required by law to have boards of directors that are elected by _____ to represent their interests.

Question

Quizplus · Accepted Answer

Shareholders are the owners of a business, so it is their interests that the board of directors is required by law to represent. Customers, government officials, union leaders, and all employees do not have the same level of ownership or investment in the business as shareholders, and therefore are not represented in the same way.

Businesses Are Required by Law to Have Boards of Directors