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

Question

Quizplus · Accepted Answer

Stockholders are the owners of the company and therefore have a financial stake in the success of the business. As a result, they elect board members who they believe will act in their best interests and help the company maximize profits. Other parties may also have a stake in the company's success, such as customers or employees, but they are not typically involved in electing board members.

Businesses Are Required by Law to Have Boards of Directors