which of the following is correct about corporate governance? A. Shareholders elect Directors, Directors hire and...

Question

Question

which of the following is correct about corporate governance?

A. Shareholders elect Directors, Directors hire and fire Officers.

B. Officers elect Directors, Shareholders elect Officers.

C. Shareholders elect Officers and Directors, both.

Answer 1

Answer #1

Option A.

Under the corporate governance, there are three main entities. They are the shareholders, board of directors and the officers.
The shareholders are those individuals who own some shares in a company and are responsible for managing the overall performance of the company. They are also responsible for electing the board of directors for the company.
The board of directors are the group of individuals who are responsible for properly directing the functions of a company.
In other words, they are appointed as governors of the company and they are also responsible for selecting and firing the corporate officers.
Officers are the people who work under the board of directors and maintain the company and its activities.

Answer 2

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