In many corporations, there is "separation of ownership from control." What does this mean?
A) The board of directors controls corporate operations, although the managers of the corporation own the corporation.
B) Top corporate managers only make decisions that have been approved unanimously by shareholders.
C) The shareholders control the corporation, although the board of directors owns the corporation.
D) The managers of the corporation run the corporation, although the shareholders own the corporation.
D
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An example of a monopoly is
A) a big city restaurant. B) the stock market. C) the only veterinarian in an isolated farm community. D) a large hospital in a big city.
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) equal to its revenues; small relative to its liabilities. B) high; large relative to its liabilities. C) high; small relative to its liabilities. D) low; large relative to its liabilities