Finance (board of directors)

posted by .

A corporation's board of directors

A. is selected by and cna be removed by management
B. can be voted out of power by the shareholders
C. has a lifetime appointment to the board
D. is selected by a vote of all corporate stakeholders

I read in the text book that a board of directors is appointed by the original stockholders and stockholders are the owners of the company, so (A) is not possible.

(B) is vague because a large public corporation may have millions of stockholders and I think in order vote a member of the board in or out of power a million person stockholder vote is ridiculous.

(C) has a lifetime appointment to the board....once again ridiculous, I can't think of anybody that his a lifetime position other than a parent or monarch.

So that leaves (D) .... Is D correct?

  • Finance (board of directors) -

    I don't think D is correct because of the definition of stakeholder.

    Although a large public corporation may have millions of stockholders, very few of them actually vote at annual meetings. Therefore, B is correct.

  • Finance (board of directors) -

    Agree, every year you get proxy vote forms in the mail where you can vote for or against board members if you are a share owner.

  • Finance (board of directors) -

    B is the correct answers its in the finance book look up stakeholders and read that section

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Business

    how do the purpose and function of the board of directors in a human service organization affects day-to-day operations Normally, a board of directors sets overall policies, receives fiscal and other reports to review, hires major …
  2. Human Resource Management

    how to address the board of directors that affirmative action should be implemented Tell the board that it's the law that affirmative action must be addressed. Do your research to cite the specifics.
  3. Business Law - MBA

    Major formed the Dix Corporation for the purpose of operating a business to repair, install, and sell appliances. Major is the president of the board of directors of Dix. •Pine, one of Dix’s largest creditors, has asserted that …
  4. finance part 2

    11. Whit a Subchapter S corporation A. corporate income is taxed as directed income to stockholders B. stockholders have the same liability as members of a partnership C. the number of stockholders is unlimited D. life of the corporation …
  5. finance 3 questions

    Some analysts believe that the term structure of interest rates is determined by the behavior of various types of financial institutions. This theory is called the A. ANSWER Expectations hypothesis B. Segmentation theory C. Liquidity …
  6. Human Service Management

    What method of ethical oversight (a code of ethics, ethic advisory board, oversight by the board of directors, or an ethic audit, for example) would you suggest for Acre Woods retirement community as described in the case study?
  7. Finance

    Blue Moon Corporation has one million shares of common stock outstanding. In a typical annual election for the board of directors, shareholders representing 70 percent of the shares outstanding exercise their right to vote. The company …
  8. Business- Labor

    how sympathetic are you to the statement of a former general motors chairman that offering a union leader a seat on GMs board of directors made "as much sense as having a member of GM's management sitting on the board of an international …
  9. math

    A board of directors consisting of eight members is to be chosen from a pool of 28 candidates. The board is to have a chairman, a treasurer, a secretary, and five other members. In how many ways can the board of directors be chosen?
  10. Human Resources Management

    The Primary function of the Fed's Board of directors is to

More Similar Questions