20
QuizMultiple Choice

Unit 2: Understanding Microeconomics — Test

Question 20 • Personal Finance and Economics

Based on the chart, the primary responsibility of shareholders is to

Answer
A
make business decisions on the advice of a board of directors, who follow the expertise of leaders.
B
make business decisions on the advice of a board of directors, a president, and other leaders.
C
run the business by electing a board of directors and hiring a president and other leaders.
D
run the business by electing a board of directors, who then hire the company’s leaders.

Explanation

Shareholders’ main role is to elect the board of directors. The board oversees the company and hires its leaders, who manage daily operations. So shareholders do not directly run the business or hire the president and other leaders.

AI-written and checked against the verified answer.

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