ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The stockholders elect the board of directors, who appoint a chief executive officer.
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The employees elect the board of directors, who appoint the chief executive officer of the corporation.
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The chief executive officer appoints the board of directors, who make key decisions by majority vote.
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The employees elect managers who oversee the general operation of the corporation.
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Detailed explanation-1: -What is Corporate Structure? Corporate structure refers to the organization of different departments or business units within a company. Depending on a company’s goals and the industry in which it operates, corporate structure can differ significantly between companies.
Detailed explanation-2: -6.1 The ultimate responsibility to appoint/remove directors should be that of the Company (Shareholders). If the Directors themselves are legally disqualified to hold directorships, they should have an equal responsibility for disclosing the fact and reasons for their disqualification.
Detailed explanation-3: -The board of directors of a public company is elected by shareholders. The board makes key decisions on issues such as mergers and dividends, hires senior managers, and sets their pay. Board of directors candidates can be nominated by the company’s nominations committee or by outsiders seeking change.
Detailed explanation-4: -Boards of directors most often include inside directors, who work day-to-day at the company, and outside directors, who can make impartial judgments. The top of most management teams has at least a Chief Executive Officer (CEO), a Chief Financial Officer (CFO), and a Chief Operations Officer (COO).